Wed Oct 16 13:15:29 UTC 2024: ## Nepal’s BRI Dreams Remain on Hold as China Presses for Implementation Plan

**Kathmandu, Nepal** – Despite signing a Memorandum of Understanding (MoU) in 2017, Nepal and China are locked in a stalemate over the implementation of Belt and Road Initiative (BRI) projects, with the Chinese side pushing for a formal “Implementation Plan” that has been met with resistance from Nepal.

The plan has been a key focus of Chinese diplomacy in recent years, as no BRI project has been executed in Nepal despite initial enthusiasm. While negotiations began in 2020, they have stalled due to disagreements over funding mechanisms, with Nepal advocating for grants and concessional loans while China prefers commercial loans.

The Nepali government, under the leadership of former Prime Minister Prachanda, initially pushed for the plan’s finalization, even finalizing a draft agreement with China. However, backlash from opposition parties and concerns over transparency led to the government backing down.

The recent realignment of the ruling coalition in Nepal, with the Nepali Congress playing a key role, has further complicated the situation. The party holds reservations about the financial modalities and governance of BRI projects, making it unlikely that the implementation plan will be signed anytime soon.

While China continues to categorize certain bilateral engagements as part of the BRI, Nepal maintains that no project has been successfully implemented under the initiative. This discrepancy highlights China’s eagerness to solidify its influence in Nepal, particularly in the face of US involvement in the region.

The situation remains uncertain, with China likely to continue pushing for the plan. However, the lack of transparency and Nepal’s preference for alternative funding options present major hurdles. Ultimately, the implementation of BRI projects in Nepal hinges on China’s willingness to address Nepal’s concerns and accommodate its interests.

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