Nepal Secures Rs. 9 Billion Grant from China for Development Projects

Nepal has secured a grant worth Rs. 9 billion (500 million Chinese Yuan) from China to support multiple developmental projects. According to Krishna Prasad Dhakal, spokesperson for the Ministry of Foreign Affairs, the agreements, finalized during Prime Minister KP Sharma Oli's four-day visit to China, cover initiatives such as the Tokha-Chhahare Tunnel, promotion of bilateral trade, economic and technical cooperation, and other China-assisted programs.

The grant will fund projects that continue efforts started in 2017, primarily benefiting high-hill and Himalayan regions. Alongside the grants, the Chinese government has committed additional financial assistance within Nepal’s budgetary system, allowing the government to integrate the resources into its treasury. However, the exact amount of this financial support has not been disclosed.

During the visit, the two countries signed a memorandum of understanding (MoU) for a five-year plan from 2024 to 2029, under which China will provide grants for several infrastructure projects. The MoU also includes conducting a feasibility study for constructing tunnels along the Tokha-Chhahare road segment. These initiatives are part of earlier commitments made during Chinese President Xi Jinping’s visit in 2019, where feasibility studies for the Tokha-Chhahare-Gurjubhanjyang and Betrawati-Rasuwagadhi tunnels were promised but remain unrealized. Nepal will carry out the necessary environmental impact assessments for these projects.

The two sides also agreed to promote cross-border trade, revisiting their 2016 commitment to establish free trade. Despite the agreement, progress has been slow, and both nations now aim to accelerate efforts to boost bilateral trade and strengthen economic ties. The recent agreements mark a significant step forward in enhancing cooperation between Nepal and China, with hopes for sustained development in the coming years.