Nepali Cong leader cautions on BRI loans; welcomes grants, tech assistance from China

Kathmandu: A senior Nepali Congress leader on Wednesday said Nepal can accept grants and technical assistance from China under the BRI arrangements but not loans.

The remarks of NC leader and former finance minister Prakash Sharan Mahat came days ahead of Prime Minister K P Oli’s scheduled trip to China beginning December 2.

Nepali Congress is part of the ruling coalition led by Communist Party of Nepal (Unified Marxist–Leninist) Chairman Oli.

Speaking at an event titled, “Navigating Strategic Implications of BRI for Nepal”, here, Mahat said Nepal can accept grants and technical assistance from China under the BRI arrangements but not loans.

“We are already over-burdened by various multi-lateral and bilateral loans taken in the past, so we cannot opt for a new loan in the name of development assistance,” he said.

Mahat said Nepal can seek assistance from China under BRI for the development of roads and connectivity, but its priority should be grant or technical assistance.

“We need to consider our national interest as well our assess our need before endorsing any agreement,” he said.

Nepal and China signed the first framework of the BRI in May 2017, but not a single project under it has been implemented. According to local media reports, the two countries could ink another framework for cooperation on the infrastructure project during Oli’s visit to China.

The new framework will prevail over the 2017 agreement in case of disputes or conflicts.

However, former foreign minister and senior CPN-UML leader Pradeep Gyawali said it is not the proper time to decide whether to take a loan from China or ask for a grant under BRI.

“We need to take into account the geopolitical situation and guidelines of our foreign policy while signing any such agreement. We should display our credibility and show maturity while dealing with powerful nations like China,” he said at the interaction programme organised by the think-tank Centre for Strategic Innovation and Foreign Policy.

As no country can progress in isolation in the modern age, Nepal needs to link its development initiatives with both the neighbours, Gyawali said, in an apparent reference to India and China.

India is opposed to BRI, a pet project of Chinese President Xi Jinping to further the global influence of China with investments to build infrastructure projects. New Delhi has protested against Beijing for building the USD 60 billion China-Pakistan Economic Corridor (CPEC), stated to be the flagship project of the BRI, through the Pakistan-occupied Kashmir (PoK) in violation of its sovereignty.