Spread the love

By Our Reporter

Despite speculations that Prime Minister KP Sharma would return home without signing the much-talked-about BRI Cooperation Framework during his recent visit to China, Nepal and China have officially signed the BRI Cooperation Framework at the last moment. Even the joint statement issued by Nepal and China on December 3 after the bilateral meeting between the two nations did not include the signing of the BRI Cooperation Framework. But just hours before PM Oli was to wrap up his visit, the agreement was inked on December 4. 

The signing of the agreement has advanced Nepal’s involvement in the Belt and Road Initiative (BRI), which Nepal initially signed in 2017 when Maoist Centre Pushpa Kamal Dahal was leading the government in Nepal. However, India and the USA had reportedly exerted pressure on the leadership not to join the BRI.

The signing was delayed due to disagreements over terminology to be used in the draft. The debate centred on whether to include the term “grant” in the financial cooperation modality. Following further discussions, a consensus was reached on December 4, with both sides agreeing to use the term “aid assistance financing.”

PM Oli wanted to sign the BRI Cooperation Framework at any cost this time, but the Nepali Congress, the key ruling coalition party was against accepting loans from China. The NC suggested accepting only grants under BRI, and a draft was prepared accordingly which the Chinese side refuted stating that BRI was not for grant.

The ‘grant financing cooperation modality, initially proposed by Nepal was amended by the Chinese to an ‘assistant financing modality’ to which the Nepali side did not agree. Eventually, the term ‘aid assistance financing’ was agreed upon by both parties.

The negotiations were led by Prime Minister Oli’s economic and development advisor Yubaraj Khatiwada and Foreign Minister Arzu Rana Deuba from Nepal’s side. High-ranking officials from China’s Ministry of Foreign Affairs represented the Chinese delegation.

However, even after PM Oli returned home on December 5, the debate over grants or loans continued to surface, prompting Prime Minister Oli, Nepali Congress president Sher Bahadur Deuba and even Home Minister Ramesh Lekhak to clarify that no loan agreement was signed. Surprisingly, the agreement was not made public for days, and the government made it public only on Tuesday.

Interestingly, the issue of BRI agreement inked by Nepal was unnecessarily hyped by a section of Nepali media and politicians that the agreement would cause a fall of the government. The impact of the rumours was felt in NEPSE on Sunday and Monday when it plunged.

Coincidentally, US Assistant Secretary of the State for the Bureau of South Asia and Central Asian Affairs Donald Lu arrived in Nepal immediately after Oli’s return from China, and Lu’s Nepal visit was interpreted as an attempt to pull down the Oli-led government to sign the BRI agreement. The Indian media were there to spread disinformation about the agreement. The Indian media as well as politicians have been opposing the agreement inked by Nepal while India itself is receiving Chinese support.