Kathmandu, April 26: Nepal’s new government has initiated a review of several infrastructure agreements made with China, following a shift in power. Historically, China has leveraged its economic ties with Nepal to exert political influence in the Himalayan nation.
According to a report published by the Delhi-based Institute for Conflict Research and Resolution (ICRR), China’s growing role in Nepal has transcended mere economic cooperation. It has manifested as strategic and political intervention, impacting internal decision-making processes and applying diplomatic pressure on issues related to Tibet and Taiwan.
During K.P. Sharma Oli’s tenure, Nepal entered into numerous agreements with China, which were portrayed as revolutionary steps towards economic independence. However, the current administration is scrutinizing these deals to understand why many projects initiated during Oli’s term have stalled, faced delays, or come to a standstill without clear reasons.
The new government has also declared that no new agreements with China will be considered until a comprehensive review of existing projects is completed.
A pivotal moment in Nepal-China relations occurred between 2016 and 2018, when Nepal aligned closely with Beijing under the Belt and Road Initiative (BRI). The Oli government framed these agreements as historic opportunities to transform Nepal into a regional connectivity hub. However, many of these infrastructure projects have lacked practical planning and financial clarity.
The report highlights several stalled projects, including the Budhi Gandaki Hydropower Project, which was awarded to China’s Gezhouba Group in May 2017 but was canceled in November 2017, reinstated in 2018, and has since seen little progress since 2022.
Similarly, the proposed Kerung-Kathmandu railway project, announced around 2016-2017, remains stuck in 2026 due to technical challenges and a lack of financial solutions.
The Trans-Himalayan Multidimensional Connectivity Network, initiated under the BRI between 2017 and 2018, has not progressed beyond theoretical discussions. Cross-border transmission line projects discussed between 2018 and 2020 have yet to be implemented.
Furthermore, the development of infrastructure at the Rasuwagadhi-Kerung border, initiated between 2017 and 2020, has been slow and partial. Projects aimed at enhancing northern highway connectivity, started between 2016 and 2018, remain incomplete, while most BRI-related initiatives identified during 2018-2019 have not been realized by 2026.
The report also notes that digital expansion efforts involving Huawei and ZTE since 2017 have progressed unevenly, raising concerns about both implementation and strategic implications.
– ABS/
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