Nepal and China signed a “Framework for Belt and Road Cooperation” on Wednesday during Prime Minister KP Sharma Oli’s visit, replacing ‘grant financing’ with ‘aid financing.’

Nepal and China signed the “Framework for Belt and Road Cooperation” during Prime Minister KP Sharma Oli’s visit, replacing ‘grant financing’ with ‘aid financing.’

The change was made after China rejected Nepal’s proposal to have BRI projects funded entirely by grants, without loans.

The framework agreement was signed after informal discussions between officials from both countries, and it marks the conclusion of Oli’s visit to China on 5th December.

PM Oli praised the fruitful discussions with Chinese leaders, including Premier Li Qiang, NPC Chairman Zhang Leji, and President Xi Jinping.

The Nepali Congress opposed taking loans under the BRI, prompting Nepal to prepare only a list of projects for grant financing.

The MoUs were not signed during the meeting between Prime Minister KP Oli and Chinese Premier Li Qiang.

Nepali Foreign Minister Arzu Rana later discussed BRI funding options with Chinese officials, with China proposing some projects be funded through loans, but Nepal still needs to decide.

Internal discussions in Nepal led to the agreement to replace “grant” with “aid” financing.

A joint statement on 3rd December mentioned both countries’ willingness to sign MoUs on the Trans-Himalayan Connectivity Network and the Belt and Road Cooperation framework soon.

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