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BRI breakthrough: Nepal and China sign framework agreement

Signing of ‘Framework for Belt and Road Cooperation’ marks a major accomplishment during Nepal Prime Minister KP Sharma Oli official visit to China, especially since the process had stalled since 2017.

Kathmandu: Nepal and China signed the BRI agreement Wednesday morning in Beijing, Ministry of Foreign Affairs of Nepal confirmed. Titled as ‘Framework for Belt and Road Cooperation,’ signing of the document marks a major accomplishment during Nepal Prime Minister KP Sharma Oli official visit to China, especially since the BRI process was stalled for a long time since the MoU was signed in 2017.

There was a lot of skepticisms in Kathmandu regarding whether BRI deal would be signed or not, primarily due to the differing stances of ruling Nepali Congress and CPN-UML over whether BRI projects should be implemented on loan or grant basis. While Congress firmly advocated for grant and grant only, UML appeared flexible on loan arrangement as well.

Skepticism was rife also because BRI was conspicuously absent in the nine-point agreements signed between Nepal and China on Tuesday.

Nepal and China have agreed on ‘aid-financing’ modality for BRI cooperation implementation, it has been learnt.  Signing of framework marks a major step forward toward implementation, for there had been no progress on BRI since the MoU was signed by Nepal in May, 2017.