Foreign Minister Arzu Rana said on Wednesday that the government will initiate broader discussions with stakeholders before taking the Belt and Road Initiative (BRI) for implementation.

The foreign minister’s remarks came as various approaches to executing the BRI have emerged following the formation of a new government last week.

“Regardless of whatever is being said about the BRI, we signed a broad framework agreement on it in 2017,” said Rana, confronting the International Relations and Tourism Committee of the House of Representatives. Initial discussions have begun on the BRI implementation plan document.

The previous government, led by Pushpa Kamal Dahal, was all set to sign the implementation plan during the foreign secretary-level talks between Nepal and China on June 25. However, due to differences over the funding modality between Nepal and China, it could not be signed and was postponed.

In early 2020, after Nepal failed to expedite the projects under the BRI, the Chinese side forwarded a draft of the BRI implementation plan to Nepal to help streamline the negotiation process and ascertain the funding modality. Due to the differences over the funding modality between Kathmandu and Beijing, the document intended to be finalised by the National Planning Commission has been in limbo.

“We haven’t decided on anything yet, or whether to adopt a certain funding modal, take a loan or grant for particular projects,” she said while asking the committee to initiate a broader discussion on the BRI.

According to a recent statement by the immediate past prime minister, Pushpa Kamal Dahal, at the House of Representatives on June 25, Nepal preferred a grant over loan for funding projects under the BRI. If the projects are to be funded through loans, then Nepal will look for terms similar to the World Bank and the Asian Development Bank, with interest rates not exceeding 1 percent or 1.5 percent per annum.

In the meeting, Sishir Khanal of the Rastriya Swatantra Party said that due to lack of maintaining transparency in treaties and understandings, BRI implementation has become controversial in Nepal.

Earlier, the Millennium Challenge Nepal Corporation, a $500 million US grant, had also landed in controversy. “Do we want to make BRI controversial like MCC,” Khanal said. “Will the BRI document be discussed inside the House or not?”

Khanal demanded, “The BRI framework agreement should be discussed and tabled in the House… Do we need to sign the implementation plan of the BRI? Did other countries who signed the BRI with China also sign the BRI implementation plan?”

Sudan Kirati of CPN (Maoist Centre) urged the dispute over BRI be resolved as soon as possible.

“We have signed the BRI. Now the Chinese are saying that all economic assistance that comes from China does fall under the BRI,” Kirati said. “The Chinese are claiming that Pokhara International Airport also falls under the BRI, but in fact the Pokhara airport does not fall under the BRI.”

The Chinese contractors had built the Pokhara airport with Chinese loan and during the inauguration of the airport, the Chinese ambassador Chen Song claimed that the airport comes under the framework of BRI.

Several other lawmakers also urged that Nepal should make a clear position on BRI, the government should inform the House regarding what has happened to BRI, and what projects will be selected under it. They stated that Nepal should be careful while taking foreign loans.

“Nepal should prioritise grant, not loan, while taking assistance under the BRI,” former prime minister Madhav Kumar Nepal said. Other lawmakers also suggested that Nepal should seek Chinese grants for implementing BRI projects.

Foreign Minister Rana said BRI is not just about the present but is tied to the future.

“That’s why we need a broader discussion on the BRI in the House committee. If we are going to sign a treaty with any country, a larger discussion is necessary. This is not just about our lifetime but also the country’s future. The Millennium Challenge Corporation [compact] was widely discussed and later came to Parliament,” she said, adding that “If we are going to sign a document with any country, we need to discuss it with all stakeholders.”

Among the ruling parties, the Nepali Congress has a bit tougher stance on the BRI and is adamant over not taking any loan for executing the projects under the BRI while another ruling party, CPN-UML is a bit softer towards implementing the BRI.

“We cannot backtrack from the BRI,” Rajan Bhattarai, UML’s standing committee member, said recently during an interaction in Kathmandu arguing that Nepal committed to the agreement by signing the agreement seven years ago.

During the discussion, Rana also informed that high-level diplomatic negotiations are ongoing with Russia to repatriate the Nepali citizens serving in the Russian Army. Two former foreign ministers, Narayan Kaji Shrestha and NP Saud, took several initiatives to bring back the Nepalis serving in the Russian Army, but no progress has been made yet.

According to Rana, as many as 34 Nepali nationals died in the war between Russia and Ukraine and DNA tests of 22 Nepalis who reportedly died in the war while fighting from the Russian side are awaited.

Six Nepali nationals are currently in Ukrainian captivity as prisoners of war, she said. At least five Nepali nationals are undergoing medical treatment, and with the coordination of the Nepali Embassy in Russia, 150 Nepali nationals have returned from Russia after serving in the Russian Army.

The family members of 323 individuals, whose whereabouts are unknown, have applied for rescue. Likewise, the families of 116 individuals serving in the Russian Army have requested the government to rescue their loved ones. Additionally, families of 161 people have asked for rescue as their relatives were either wounded in the war or for other reasons, according to Rana.

“We are in talks with India and the US to bring back the prisoners of war from Ukraine. I have discussed this matter with the Indian and American ambassadors informally,” she said in the House committee. According to the Foreign Ministry, six Nepalis are in Ukrainian captivity.

“Similarly, in my recent meeting with the Indian ambassador, we also discussed the issue as India is working to repatriate its prisoners of war [POWs]…I have asked the Indian ambassador to explore the possibility of assisting our people,” said Rana, adding, “the Indian side has responded positively.”

Rana said she also met with the Russian deputy chief of mission on Tuesday where they discussed POW exchange between Russia and Ukraine. The Russian diplomat said Russia has included one Nepali national held captive in Ukraine in the exchange plan, according to Minister Rana.