Nepal, China sign three pactsNepal and China on Tuesday signed three agreements related to economic and technical cooperation, promotion of Chinese investment and economic cooperation, and oil and gas exploration in Nepal.
Nepal and China on Tuesday signed three agreements related to economic and technical cooperation, promotion of Chinese investment and economic cooperation, and oil and gas exploration in Nepal.
The deals were signed after delegation-level talks between Nepal and China led by Deputy PM and Minister for Local Development Bijaya Kumar Gachhadar and visiting Chinese Vice-premier Wang Yang.
The two sides formalised the RMB 1 billion (Rs16 billion) Chinese aid for reconstruction of the Kodari Highway announced in March, 2015. Chinese President Xi Jinping had announced the Chinese aid to upgrade the 115-km Araniko Highway that links Nepal with China, and to develop the transport infrastructure which was devastated by the earthquakes.
The amount will be spent on construction of a bridge in Rasuwa and upgradation of the Kodari Highway.
According to a Foreign Ministry statement, both the sides agreed to enhance the functions and facilities at the Nepal-China border ports. Nepal renewed its request for early opening of the Tatopani border.
In another agreement, the Chinese side will extend economic and technical cooperation for various projects to be undertaken by China in Nepal. A framework agreement on promotion of investment and economic cooperation concerns tapping Chinese private as well as public assistance in various projects including infrastructure development, road, railway, transmission line, tourism, and cross-border grids. Under the framework, both the sides reached agreements on building hydropower projects.
Oil and gas exploration entails a feasibility study on natural gas and petroleum products in the mountains, Hills and the plains and their survey and excavation. For this, China will provide Rs2 billion with immediate effect.
The vice-premier announ-ced a cash amount of $1 million in humanitarian assistance from the Chinese government to help Nepal in rescue and rehabilitation of the people affected by the floods and landslides, according to the Foreign Ministry.
Nepali officials urged the Chinese side to expand the rail link from Kerung to Kathmandu to Pokhara and Lumbini even though no concrete proposal was floated. The Chinese side has already conducted feasibility studies on these projects but the process for detailed project reports has yet to begin.
The Chinese side also pledged another Rs30 billion for upgradation of infrastructure at the Nepal-China border points.
Both the sides held substantive discussions on enhancing bilateral cooperation in the areas of trade, tourism, investment, infrastructure development, energy, cross-border connectivity and people-to-people relations, the ministry stated.
Wang told Nepali leaders that his visit was aimed at reviewing bilateral agreements reached in the past.
After concluding delegation-level talks with Deputy Prime Ministers Gachhadar and Krishna Bahadur Mahara, Wang had separate meetings with CPN-UML Chairman KP Sharma Oli and CPN (Maoist Centre) Chair Pushpa Kamal Dahal.
The visiting leaders told Oli and Dahal that China wishes to see implementation of these pacts.