Kathmandu:
Foreign Minister Dr. Arzu Rana Deuba has clarified that the recently signed Belt and Road Initiative (BRI) agreement between Nepal and China does not include provisions for Nepal taking loans. She emphasized that the agreement is based on cooperative projects, with no mention of debt obligations.
Speaking at Tribhuvan International Airport before departing for the International Court of Justice (ICJ) hearing on climate change in the Netherlands, Dr. Rana addressed misconceptions and criticisms surrounding the BRI agreement. “We have signed a cooperation-based framework under the BRI, and there is no mention of taking loans. Comments made without understanding the agreement are unfounded,” she stated.
She further elaborated that all projects under the BRI framework would move forward with mutual consent from both countries. “The agreement explicitly states that projects will only proceed based on Nepal’s agreement. If we decide not to take loans, no lender can force us. Claims that the government signed a debt-laden agreement are baseless and immature,” she remarked.
Dr. Rana revealed that the projects agreed upon are focused on grants, not loans, and fall under the Global Development Initiatives rather than security or other contentious areas. She reiterated that Nepal is not in a position to take on additional debt and that this stance was conveyed to the Chinese Foreign Minister, who agreed to Nepal’s approach.
The BRI framework prioritizes Nepal-China trade, connectivity via air and land, infrastructure development, and economic cooperation.
Separately, Dr. Rana is leading a delegation to the ICJ to present Nepal’s case on the impact of climate change and demand compensation from developed nations. This marks the first time Nepal will present its stance on the current climate crisis and its repercussions on the country at the ICJ.
During the hearing on December 8, she will highlight the damages caused by carbon emissions from developed nations and argue for compensation to vulnerable countries like Nepal. The delegation includes Udayaraj Sapkota, Secretary of the Ministry of Law, Justice, and Parliamentary Affairs, and officials from the Ministry of Foreign Affairs.
The ICJ hearing is a significant milestone for Nepal as it seeks justice for the climate-related challenges faced by developing nations.
