New Delhi, February 25: Balen Shah, the former mayor of Kathmandu, has made a significant change to his election manifesto while contesting against former Prime Minister KP Sharma Oli in the Jhapa-5 constituency. Shah has removed a multi-billion rupee project from his manifesto, which is part of China’s ambitious Belt and Road Initiative (BRI).
Nepal is set to hold parliamentary elections on March 5 under an interim government formed after widespread anti-corruption protests led to the resignation of the Oli administration last September.
According to the Kathmandu Post, Shah’s decision has brought attention to the Damak Industrial Park, which has been renamed the Nepal-China Friendship Industrial Park. This project has raised concerns in New Delhi due to its proximity to the sensitive Siliguri Corridor, located near the Nepal-India border.
Officials have expressed surprise at Kathmandu’s approval of such a large project near the border with Beijing, highlighting that the issue has become sensitive for several reasons.
Balen Shah, a 35-year-old engineer-turned-rapper representing the National Independent Party (RSP), is popular among the youth and is seen as a potential future Prime Minister of Nepal. He was previously a favored candidate for the interim Prime Minister position but distanced himself from that role.
Reports indicate that this project is part of the BRI, a massive multi-continent infrastructure program initiated by Chinese President Xi Jinping. The foundation for the project was laid by former PM Oli in February 2021 in Kamal Rural Municipality of Jhapa district.
Oli, as the chairman of the Communist Party of Nepal (UML), is known for his close ties with Beijing. While the former Prime Minister included the construction and completion of the industrial park in his recent 41-point commitment paper, Balen Shah has opted to exclude it from his manifesto.
A colleague of Shah stated, “We are aware of the project and its associated controversies, so we decided to leave it out of the manifesto.”
Previous reports indicated disagreements between the Nepali Congress and the UML regarding Kathmandu’s borrowing issues. These reports also mentioned significant delays in implementing several BRI projects, raising questions about the initiative’s effectiveness.
Concerns have been raised in some sectors of Nepal regarding the financial implications of BRI projects, especially in light of Sri Lanka’s financial difficulties linked to similar Chinese investments.
According to a document released last year by the think tank Center for Social Innovation and Foreign Policy (CESIF), China initially proposed various financing options, from mixed financing models to commercial loans. The Nepali Congress opposed commercial loans, but the final agreement adopted the terminology of “assistance financing model” instead of “grant financing model.”
The CESIF report noted that Beijing’s demand for extensive tax concessions posed a significant hurdle for Kathmandu, which the Nepalese Finance Ministry opposed, as these concessions would not only be limited to the construction phase but would also extend for many years after project completion.
Despite the controversy surrounding China’s demands, a decision was made during a meeting of the Nepal Investment Board under former Prime Minister Oli’s leadership to expedite the project.
The report also mentioned that India had flagged this project as a red line and advised both the Nepali Congress and UML not to proceed.
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Arpit Yajgnik/MS
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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