Nepal and China on Wednesday signed the execution framework for the Belt and Road Initiative (BRI) in Beijing, indicating that Nepal will soon decide on projects for implementation. The development has come when Nepal PM K P Sharma Oli is on an official visit to China. Nepal Foreign Ministry officials said the framework agreement was signed by the acting foreign secretary and the vice chairman of China's National Development Reforms Commission, ending speculation triggered by the government's stance that it will accept only grants for projects under the BRI. Last week upon returning from Chengdu, Nepal Foreign Minister Arzu Rana Deuba had said that Nepal will accept only grants from China for BRI projects as the country is not in a position to go for loans. Details of the agreement have not yet been made public but if the Nepali Congress, the biggest coalition partner in the government, and Deuba stick by their pre-visit position, the K P Sharma Oli-led government might face a crisis once the Prime Minister returns Thursday. According to The Kathmandu Post, China had removed the word “grant” proposed by the Nepali side and suggested replacing it with “investment” for projects under the BRI. After reviewing the new terms and conditions, officials found a compromise and decided to include the phrasing “aid and technical assistance” to project execution in Nepal, it said. The word “aid” adds ambiguity and marks a step back from the Nepali Congress's position of clearly specifying grants. Some countries also term line of credit as aid but which are essentially loans, the paper said. The two sides had signed nine MoUs and agreements on Tuesday. Speaking at a programme held at Peking University, Oli later said that Nepal would reap benefits from the BRI. He expressed the belief that China has strongly supported Nepal's development and that the BRI project initiated under the leadership of President Xi Jinping would further deepen bilateral relations between the two countries, the Himalayan Times reported. —With PTI inputs
