Kathmandu: The Ministry of Foreign Affairs has revealed details of the Framework for Belt and Road Cooperation signed between Nepal and China. This framework, agreed upon during the recent high-level visits, outlines the strategic approach for Nepal’s participation in China’s Belt and Road Initiative (BRI), emphasizing infrastructure development, trade, and investment.
Key highlights of the framework include Nepal’s focus on prioritizing projects that align with national development goals, enhancing connectivity through roads, railways, and digital infrastructure, and promoting sustainable economic growth. The agreement also underscores Nepal’s commitment to maintaining transparency, mutual respect, and sovereignty while engaging in BRI projects.
The Ministry stated that this cooperation framework is expected to strengthen bilateral ties, facilitate access to regional markets, and support Nepal’s ambition to transform itself into a land-linked country. However, some stakeholders have raised concerns about potential financial and environmental impacts, calling for careful project selection and implementation to avoid unsustainable debt and ecological harm.
This disclosure is seen as a step towards ensuring public awareness and accountability in Nepal’s international engagements.
Foundation of Cooperation
Nepal and China have enjoyed strong ties since establishing diplomatic relations in 1955. The two nations elevated their partnership to a “Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity” following mutual state visits in 2019 by former President Bidya Devi Bhandari and Chinese President Xi Jinping.
Building on the 2017 Memorandum of Understanding (MoU) for BRI cooperation, the new framework emphasizes shared principles of mutual respect, environmental sustainability, and pragmatic cooperation to achieve meaningful development outcomes.
Key Areas of Cooperation
The framework identifies five major areas for deepening cooperation:
1. Economic Cooperation: Focused on technical and financial assistance to support Nepal’s development efforts, particularly sovereign-initiated projects.
2. Financial Sector: Promoting bilateral investments, financial regulation cooperation, and the use of national currencies in trade.
3. Connectivity: Advancing the Trans-Himalayan Multidimensional Connectivity Network, including roads, railways, aviation infrastructure, and telecommunication projects.
4. Trade and Investment: Encouraging bilateral trade through infrastructure development and exhibitions.
5. Customs and Trade Facilitation: Strengthening border cooperation and promoting efficient customs procedures.
Identified Projects
Several priority infrastructure projects were included in the agreement:
Tokha-Chhahare Tunnel: A vital link between Kathmandu, Nuwakot, and Rasuwagadhi to boost trade with China.
Hilsa-Simikot Road: Part of the Karnali Economic Corridor, enhancing connectivity in rural Nepal.
Kimathanka-Khandbari Road and Bridge: Connecting Nepal’s eastern border areas with China.
Mechanisms and Future Plans
The framework designates lead agencies from both sides, including Nepal’s Ministry of Foreign Affairs and Ministry of Finance, to coordinate activities. Projects will be subject to feasibility studies and negotiated agreements to ensure alignment with national laws and international standards.
The agreement remains valid for three years, with automatic extensions unless terminated with prior notice. It ensures flexibility for both nations to cooperate with other countries on similar initiatives.
This framework solidifies Nepal’s role in the BRI, fostering long-term development and closer ties with its northern neighbor.
