KATHMANDU: China, Nepal’s northern neighbor, is currently in competition to become a world power. Its goal is to surpass the United States by 2025 and become economically and strategically stronger than the United States.
The rapid economic and technological development that China has undergone in the last three decades seems to be pleasant for neighboring countries like Nepal. However, China, which is expanding its economic dominance globally, has adopted a unique partnership policy in Nepal.
Explaining Nepal’s backwardness and unstable politics to its advantage, China has been abandoning dozens of large-scale projects, saying it would extend the benefits of development to neighboring countries, creating the opposite obstacle in Nepal’s journey to prosperity.
Especially in the changed political context, when India imposed an economic blockade in 2015, then Prime Minister KP Sharma Oli visited the northern neighbor, and China connected with Nepal in big multi-year strategic projects.
At the time of Oli’s visit to Beijing, he had announced that Nepal had been transformed from a ‘land lock’ to a ‘land link’ country. Nepal had signed many points with China regarding the construction of inter-country infrastructure during that time.
Encouraged by Beijing’s assurances of providing oil, and railway services, among others, Prime Minister Oli reached Rasuwagadhi on December 19, 2017.
After all, why doesn’t China implement its old commitments by repeatedly assuring railways and oil? Planner Dr. Jagdish Chandra Pokhrel says that Nepal also has a weakness in not being able to move ahead with the big projects undertaken by China.
Pointing toward Rasuwagadhi, he had then said, “Now a Chinese train will enter from that very point and connect Kathmandu with our northern neighbor.”
Four years later, when the Chinese Foreign Minister visited Nepal, the Government of Nepal signed a feasibility study agreement with China for the construction of this railway.
During the visit of the Chinese Foreign Minister to Nepal, he reiterated his assurances about railways and that the projects that had been neglected for years would now gain momentum.
However, it’s been five years since the Chinese side has been assuring Nepal of the feasibility study of the Kerung-Kathmandu railway line.
After Nepal signed the BRI agreement on May 12, 2017, China assured Nepal of several major projects and investments.
One year later, in June 2018, during his visit to China, the then Prime Minister KP Sharma Oli signed an important agreement on rebuilding infrastructure. In April 2019, during President Bidyadevi Bhandari’s state visit to China, an implementation agreement was signed and the same issues were included in the joint statement.
During President Bhandari’s visit, it was mentioned that a multi-dimensional cross-border infrastructure network would be set up between the two countries under the BRI project.
Six months later, in October 2019, Chinese President Xi Jinping paid a state visit to Nepal.
Even then, China hastily linked these same infrastructure projects to the implementation of the BRI agreement and returned to China by declaring Nepal a “land-linked” country from a landlocked country. China’s commitment and investment project proposals fell by the wayside again.
The Chinese Foreign Minister visited Nepal for the last time as a special envoy to reiterate the Chinese commitment and reassurance that the Chinese President had been in Nepal for almost two years.
In Nepal, however, the debate over whether to approve the US aid project MCC agreement or return the grant under the MCC had just come to an end.
Wang, who arrived in Nepal after failing to return a grant under the MCC and thwart plans to build a road and transmission line, returned with the same old railway and road construction assurances.
However, it has been five years since China promised to connect the Kerung railway to Rasuwagadhi and extend it to Kathmandu under grant or BRI.
The preliminary study report of the Kerung-Kathmandu railway has been prepared by China on December 8, 2010.
The Ministry of Physical Infrastructure and Transport has also sent a letter through the Ministry of Foreign Affairs in 2078 BS requesting to carry out a detailed feasibility study of the Kerung-Kathmandu railway.
But China has said it will take another 42 months for a detailed study, after a long struggle to keep all its plans and commitments under wraps.
Looking at the agreements and bilateral commitments between Nepal and China, a memorandum of understanding was signed in 2076 BS to make the DPR of Kerung-Kathmandu, Kathmandu-Pokhara and Pokhara-Lumbini railways.
The Chinese side has not dug even a single hole in the project, which is expected to be completed within two years. So far, the intention is to occupy the project rather than build a park.
Regarding the implementation of the understanding reached during the visit of Chinese President Xi Jinping to Nepal, a meeting was held between Nepal and Chinese officials in Kathmandu in 2076 BS and the responsibilities were shared.
At the same meeting, it was agreed that China would carry out a detailed feasibility study, including a geological study of the railway, at its own expense.
According to Deepak Kumar Bhattarai, Director General of the Railway Department, the Chinese technical team has been in constant touch for the last two years but could not come to Kathmandu due to the coronavirus pandemic.
After all, why doesn’t China implement its old commitments by repeatedly assuring railways and oil? Planner Dr. Jagdish Chandra Pokhrel says that Nepal also has a weakness in not being able to move ahead with the big projects undertaken by China.
“We look at every project from a political point of view, depending on the agreement reached under which government, the projects under BRI are in disarray and the projects under MCC are also under scrutiny,” Pokhrel said.
“Therefore, we must continue to focus on our needs and priorities,” he added.
According to Dr. Pokhrel, China’s priority is not grants but loans. There may be internal conditions and policy issues involved, but the image was that China would take over the Kodari Highway or just one or two projects on time.
No such result has been seen so far, many projects have been started but the work has not been completed in a short time.
Projects already started are in limbo
The progress of the projects that have already started is also not satisfactory. As per the agreement reached to build an industrial park in Damak, Jhapa in 2076 BS with the assistance of the Chinese government, the construction work of the park has not started yet except for the technicalities.
It has been two years since the Investment Board approved a budget of around Rs 65 billion for the construction of the 1,600-hectare park, which was undertaken by China’s Lhasa Economic and Technology Development Zone Jingping Joint Construction.
The government has not been able to manage the land of the locals to construct this park.
Hundreds of people in the affected areas are set to protest. Then Prime Minister Oli had laid the foundation stone of the park without a detailed study and settlement rehabilitation plan.
Former Nepali Ambassador to China Tanka Karki admits that the work has not progressed as per the Chinese commitment due to poor preparation and lack of diplomatic initiative by the Nepali government.
Oli’s party, the CPN-UML, has been defeated by the people in the local elections this time. Therefore, the Chinese park has become counterproductive for UML.
The Chinese side has not dug even a single hole in the project, which is expected to be completed within two years. So far, the intention is to occupy the project rather than build a park.
Meanwhile, according to infrastructure experts, the work of upgrading the Rasuwagadhi-Kathmandu road is similarly chaotic.
The construction work of the Kimathanka-Line road has not started as per the commitment. The DPR of the road project from Dipayal to the Chinese port has not been made yet. A feasibility study of the Tokha-Bidur road including the tunnel has not been done.
The Syafrubesi-Rasuwagadhi road expansion work, which China has undertaken to spend on grant aid, is in disarray.
Similarly, regarding the construction of the Galchi-Rasuwagadhi-Kerung 400 KV transmission line, the transmission line is showing excuses.
As per the understanding reached during the then Prime Minister KP Oli’s visit to China in 2016, an agreement has been reached between NEA and the State Grid Corporation of China to conduct a detailed study on the joint technical level of the project.
But Chinese officials who agreed two years ago have not conveyed any concrete response. According to the agreement reached by the Nepal Electricity Authority, a transmission line would be constructed from Ratmate in Nuwakot to Rasuwagadhi in China.
However, the process of constructing a transmission line from Ratmate to Dhunche and from Dhunche to Rasuwagadhi in Nuwakot has not been started yet.
At present, China is questioning the investment modalities for the construction of the transmission line without conducting a feasibility study, according to Investment Board officials.
In other words, China has indicated that it will not be able to build a parallel transmission line on the transmission line with the MCC project on a grant basis.
According to infrastructure experts, bilateral agreements have been reached on projects like Koshi-Gandaki-Karnali Corridor, Madan Bhandari Technical School, Tamor Hydropower Project, and Kimathanka-Hile Road, Phukot Hydropower Project, Dipayal-China Road but moving ahead with construction is not a priority for China.
The study process is in jeopardy after China said high-capacity interstate transmission lines could not be built on full subsidy.
Similarly, the Chinese side has not shown interest in the construction of the 762 MW Tamor Hydro Project and 426 MW Phukot Karnali Hydro Project.
Former Nepali Ambassador to China Tanka Karki admits that the work has not progressed as per the Chinese commitment due to poor preparation and lack of diplomatic initiative by the Nepali government.
Many of the projects that China has pledged to move forward may have been delayed by the coronavirus pandemic, according to Karki.
However, China has also abandoned the Kathmandu-Kerung interstate railway and the Kathmandu Ring Road expansion project.
It has been two years now that more than 2200 trees have been cut down as per the proposal made by the Chinese contractor to acquire 31-31 meters of land on the right and left side of the road boundary and remove trees and houses for the total 11.6 km road extension from Kalanki to Chabahil – Gopi Krishna road section.
However, the Ring Road Expansion Project has started the process of paying around Rs 2 billion including 6,944 square meters of land acquisition and land compensation but the Chinese contractor company has not provided a detailed study report DPR of the road.
This work is also neglected due to the reluctance of the Chinese contractor to send it to the Chinese government.
It is mentioned in the grant agreement that the contractor will be selected by the Chinese government to expand this section to 8 lanes.
The Chinese construction company Shanghai Construction had handed over the road section to Nepal in 2075 BS after five years as China had agreed to extend the 10 km 400-meter road from Koteshwor to Kalanki within two years.
China has not intervened in the second phase since then.
Similarly, the petroleum exploration project that started with Chinese investment has also fallen into disrepair.
Dr. Krishna Raj Pant, an economist, says that there is a problem in putting the project under Belt Road Initiative (BRI) and the construction of infrastructure contracted with Nepal in one basket.
As per China’s commitment, the DPR of Tokha-Chhare-Gurjubhanjyang is about 5 km, and Betrawati-Rasuwagadhi (Ghattekhola) about a 24 km tunnel has not been made. It was announced by China during President Xi Jinping’s visit to Nepal as Megha Project.
According to infrastructure experts, bilateral agreements have been reached on projects like Koshi-Gandaki-Karnali Corridor, Madan Bhandari Technical School, Tamor Hydropower Project, and Kimathanka-Hile Road, Phukot Hydropower Project, Dipayal-China Road but moving ahead with construction is not a priority for China.
It was mentioned that the dry port of Rasuwagadhi, which was started in 2074 BS, would be handed over to the Government of Nepal within two years.
However, the cost has gone up to over Rs 200 crores due to a delay in the construction of the port, which is estimated to cost Rs 180 crores.
Planners say that the Chinese tendency to hold on to the plan by raising the issue of debt, interest rate, or return when the level of commitment is expressed but investing continues to prevail.
According to the latest energy trade agreement between Nepal and India, China is shocked that India is trying to move railways and power transmission lines together as India will not buy power from third-country investment projects.
After the construction of the transmission line along with the railway, electricity trade between Nepal and China would start and through the same transmission line, China could study the possibility of buying and selling electricity with Nepal and other South Asian countries.
At present, there is no trade between India and China through the same transmission line, so China may have questioned the modalities of the transmission line, estimates energy expert Mukesh Kafle.
“The transmission line could be of long-term importance in connecting India and China’s energy market by raising the wheeling charge,” Kafle said.
The project agreement for the construction of a transmission line with China states that the line will be 500 KV towards China and 400 KV towards Nepal. However, China has not yet commented on the progress of the converter station and the project towards China.
It is to be recalled that the Chinese authorities, in the midst of the coronavirus pandemic, continued the work of Pokhara Airport, which is being constructed with the help of a loan by bringing technicians, workers and equipment in special aircraft.
As per China’s commitment, the DPR of Tokha-Chhare-Gurjubhanjyang is about 5 km, and Betrawati-Rasuwagadhi (Ghattekhola) about a 24 km tunnel has not been made. It was announced by China during President Xi Jinping’s visit to Nepal as Megha Project.
At present, there is no trade between India and China through the same transmission line, so China may have questioned the modalities of the transmission line, estimates energy expert Mukesh Kafle.
“The transmission line could be of long-term importance in connecting India and China’s energy market by raising the Ham Wheeling charge,” Kafle said.
The project agreement for the construction of a transmission line with China states that the line will be 500 KV towards China and 400 KV towards Nepal.
However, China has not yet commented on the progress of the converter station and the project towards China.
As per China’s commitment, the DPR of Tokha-Chhare-Gurjubhanjyang is about 5 km, and Betrawati-Rasuwagadhi (Ghattekhola) about a 24 km tunnel has not been made. It was announced by China during President Xi Jinping’s visit to Nepal as a megaproject.
Economic activities between the two countries have come to a standstill due to the remoteness of the border area of the Arani Highway, which has a long history between the two countries.
However, China has not repaired the Miteri road section of 25 km from the border in time.
It has also promised to upgrade the road from Dhulikhel to Kodari but no progress has been made except holding the project.
China, which is making excuses for the operation of the Tatopani checkpoint which was closed after the devastating earthquake of 2015, has been saying that it has given priority to the Rasuwagadhi checkpoint over the Tatopani checkpoint.
But for the last three years, both the checkpoints have been the victims of an undeclared syndicate.
It is to be recalled that the Chinese authorities, in the midst of the coronavirus pandemic, continued the work of Pokhara Airport, which is being constructed with the help of a loan by bringing technicians, workers and equipment in special aircraft.
Although the construction of Pokhara Airport has not been completed as per the investment agreement, China has already handed it over to the Government of Nepal. Work at the airport was not stopped even during the pandemic.
Comment