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Govt approves agreement to connect Nepal with China by rail


12 July 2024  

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KATHMANDU: Prime Minister Pushpa Kamal Dahal, facing a crucial vote of confidence in Parliament on Friday amid withdrawing support from parties like CPN-UML, has made a move before departing his post.

At the Council of Ministers meeting on Thursday, PM Dahal decided to endorse an agreement with China, a crucial component of the Belt and Road Initiative (BRI), aimed at enhancing connectivity between Nepal and China through rail.

“The Cabinet meeting held on Thursday decided to approve the ‘Strengthening the Development Cooperation in Building the Trans-Himalayan Multidimensional Connectivity Network’ agreement between Nepal and China,” announced Communication Minister Rekha Sharma, highlighting the government’s decision.

Sources within the government emphasize that this decision, particularly regarding railway connectivity and road expansion towards China, holds more operational than political significance.

According to a government official, “This decision is part of Nepal’s participation in the BRI.”

However, despite its potential implications for the BRI, a minister downplayed its immediate impact, stating, “This is a preliminary decision; details of project implementation and BRI modalities have yet to be finalized.”

Prime Minister Dahal’s move, made on the eve of his departure from office, is seen not only as a step towards actualizing BRI projects but also as pivotal for initiatives like the Kerung-Kathmandu railway and broader infrastructure development along the Chinese border.

Earlier, ahead of signing a power-sharing agreement with CPN-UML, the Nepali Congress had resolved to “only accept grants and not loans under the BRI project.”

The government was also poised to decide on implementing the 2017 BRI agreement with China, which has been pending at the Council of Ministers.

Publish Date : 12 July 2024 09:34 AM

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