Nepal and China, during Prime Minister KP Oli’s latest official visit to China, signed a new deal titled “Development plan for year 2025-2029” under the ambit of Belt and Road Initiative and Trans Himalayan Multi Dimensional Connectivity Network (THMDCN).

However, the text of the new agreement signed between Nepal’s Ministry of Finance and China International Development Cooperation Agency, which is considered China’s external aid agency, has been kept a secret.

Mahesh Bhattarai, spokesperson at the Finance Ministry, told the Post that the ministry is not fully aware of the text of the ‘development plan’ signed in Beijing and is waiting for details from the Ministry of Foreign Affairs.

On Tuesday, the Ministry of Foreign Affairs released the text of the framework for Belt and Road Cooperation signed between Nepal and China in Beijing last week. However, the Memorandum of Understanding between the Ministry of Finance, Nepal and China International Development Cooperation Agency on development plan (2025-2029) is yet to be released.

But some areas of cooperation identified in the plan were incorporated in several high-level visits and joint communiques in the past, including Prime Minister Oli’s recent visit to the northern neighbour. The Chinese government has not mentioned the amount it will provide Nepal for the next four years to execute the plan.

Officials also said that there are lots of duplications of the areas of cooperation offered by the Chinese side, particularly when compared to the recently concluded framework for BRI cooperation and other joint statements issued after past high-level visits, especially after Oli’s first official visit to China in 2016, in the wake of the Indian blockade.

According to the text of the new development plan seen by the Post, it will follow the framework of the BRI and THMDCN, agreed upon in April 2018, in Beijing.

“Nepal and China are traditional friendly neighbours and both sides have established a strategic partnership of cooperation featuring everlasting friendship for development and prosperity,” said the text of the new development framework. “The two sides are willing to promote the high-quality development of the Belt and Road Initiative (BRI) through efforts, working together to implement the Global Development Initiative (GDI).”

In the new proposal, the Chinese side had sought to prioritise the Global Security Initiative (GSI) and Global Civilisation Initiative (GCI) which the Nepali side rejected.

Although Nepal has joined the GDI, it has declined to join the GSI and GCI that have been proposed in the development plan.

“We were surprised to see that the Chinese side had inserted GSI and GCI in the development plan,” said an official who was part of the prime minister’s delegation to China. “This particular portion was deleted in Kathmandu before the signing of the agreement in Beijing.”

In the same text, the Chinese side had offered to provide various forms of funds from multiple sources, including “Chinese grants, interest-free loans, government concessional loans, and the Global Development and South-South Cooperation Fund, among others,” to implement development projects.

But the Nepali side rejected such funding modalities and insisted on accepting only grants.

The funding modalities for projects under the four-year development plan have yet to be finalised.

“We will follow the ‘aid assistance financing’ modality as agreed in the recent framework for BRI cooperation or will adopt a new modality, which has yet to be worked out,” the official added.

Ahead of her visit to various European countries, Foreign Minister Arzu Rana Deuba told the Post last week that the “development plan” was first proposed by the Chinese side during Pushpa Kamal Dahal’s tenure as prime minister. It is unclear when the proposal reached the Ministry of Finance, but officials said that it could not get through due to concerns over several clauses.

“It is just a development plan between Nepal and China that Beijing will support under the framework of the GDI,” said foreign minister Deuba.

But the GDI has never been part of the BRI and is aligned with the United Nations development priorities.

The projects under the GDI are executed in various countries including in Nepal through the UN system.

The GDI consolidates China’s international development cooperation agenda and seeks to bolster its role as a development partner for the Global South.

More than 100 countries and many international organisations including the UN have supported and participated in the GDI. Additionally, more than 80 countries have joined the Group of Friends of the GDI.

The Nepali side can make its share of contribution by jointly investing in the projects, according to the final text of the development plan.

For the year 2025 to 2029, the two sides agreed that the main focus areas of Nepal-China development cooperation will be infrastructure connectivity. The text of the development plan states that China will continuously promote the development cooperation in areas including ports, highways, railways, aviation, and power grids; and support infrastructure construction on the Nepali side of the border points like Gyirong (Rasuwagadhi), Zangmu (Khasa), Purang (Taklakot, Humla), and Lizi (Korola, Mustang) for jointly developing the Trans Himalayan Multi-Dimensional Connectivity Network (THMDCN).

The vision for the THMDCN was one of the major outcomes of Prime Minister Oli’s visit to China in June 2018. The concept was originally agreed by then foreign minister Pradeep Gyawali and his Chinese counterpart, Wang Yi, in April 2018.

The joint statement issued after Oli’s 2018 visit stated,“The two sides agreed to intensify implementation of the Memorandum of Understanding on Cooperation under the Belt and Road Initiative (BRI) to enhance connectivity, encompassing such vital components as ports, roads, railways, aviation, and communications within the overarching framework.”

Another area of cooperation identified under the development plan is social well-being, where it is stated that China will continuously provide assistance in healthcare and education, while exploring more “small yet smart” projects in areas such as education, healthcare, poverty alleviation, agriculture that genuinely benefit the two countries and their peoples.

Similarly, in disaster prevention and mitigation, China has offered consistent sharing of experiences, capacity building, and technological cooperation to ‘comprehensively enhance’ disaster prevention and response capabilities.

On cultural development, the Chinese side offered continued restoration of significant cultural heritage sites, preservation and repair of historical buildings, exhibition and utilisation of cultural relics, and cultivation of professional personnel, according to the text of the development plan seen by the Post.

The Chinese side also offered to support Nepal’s human resource development through talent training in various fields; provide more multilateral and bilateral training opportunities; as well as part-time degree and diploma education opportunities based on the needs of the Nepali side.

“Both parties agree to hold online or offline meetings to align project progress, promptly address issues, and effectively advance the implementation of development cooperation projects. Both sides agree to conduct joint inspections periodically to supervise and evaluate the effectiveness of aid projects, ensuring their integrity and efficiency,” the development plan text reads.

In general, the development plan outlines areas of cooperation for the next four years, said Krishna Prasad Dhakal, the foreign ministry spokesperson. “As of now, no further details have been discussed besides identifying certain areas of cooperation.”

Dhakal could not explain the rationale of signing the development plan, which includes several proposals already outlined in the framework for BRI cooperation and several past joint communiques.

“This development plan is something different from the BRI agreement. It outlines the areas of Chinese cooperation for the next four years. We will identify specific projects to be implemented under it,” he added.