PM Oli's China visit preparation: Congress, UML leaders discuss BRI

Kathmandu, November 20 — A long discussion took place between the top leaders of the ruling parties, CPN-UML and Nepali Congress, regarding the potential benefits Nepal could gain from the Belt and Road Initiative (BRI) during Prime Minister KP Sharma Oli’s upcoming visit to China.

The meeting, held at the Prime Minister’s official residence in Baluwatar on Tuesday, lasted nearly six hours. The discussions covered various topics, including effective government operation and preparations for PM Oli's China visit.

“A major part of the conversation focused on how to make government operations more effective,” said a leader who participated in the meeting. “The government is bound to work according to the budget and policies brought by the Prachanda-led government. However, the discussion was about how to improve the effectiveness of government work amidst these constraints.”

According to the leaders, discussions also focused into the agendas for the Prime Minister’s China visit, particularly focusing on the BRI projects. 

There were various discussions among the ruling parties about whether to sign an agreement for implementing BRI projects during PM Oli’s visit to China. Currently, the two major parties, UML and Nepali Congress, have different views on the BRI. 

The Nepali Congress believes it can only accept BRI projects if they are in the form of grants, whereas the UML is in favor of accepting even low-interest loans from BRI. This difference of opinion has led to a delay in Nepal signing the BRI agreement.

Prime Minister Oli believes that signing the BRI agreement during his China visit in December will accelerate Nepal's development. However, Nepali Congress leaders are still not ready to accept the proposal. Prime Minister Oli's strategy is to first secure an agreement between the two ruling parties and then hold discussions with other political parties.

Before the Baluwatar meeting, Nepali Congress President Sher Bahadur Deuba had discussed BRI and the PM's China visit with his two General Secretaries, Gagan Thapa and Bishwaprakash Sharma. Deuba invited them to his residence to inquire about the pros and cons of BRI.

Regarding the discussions with President Deuba, General Secretary Bishwaprakash Sharma preferred not to speak openly. “We discussed current political issues, party work, and by-elections with the party president,” Sharma told Ratopati.

Ahead of Prime Minister Oli’s China visit, the Chinese government has proposed cooperation on at least four projects under the BRI framework. These proposals include the Tokha-Chhahare Tunnel, Rasuwagadhi-Kathmandu road upgrade, a dry port at the Korala border, and an investment in a hydropower project. Along with these proposals, Prime Minister Oli has also requested a waiver for the loan for the construction of the Pokhara airport. If the Chinese government accepts this, Oli believes that Nepali Congress, as a coalition partner, will also agree.

Sources indicate that, similar to the MCC project, the two parties may need to finalize BRI, but they are still discussing how to build trust with all stakeholders. 

"Since the formation of the ruling coalition, there has been continuous discussion about BRI. On Tuesday, there were more in-depth conversations on the matter," a source close to the Prime Minister said.

Participants in the Baluwatar meeting included Prime Minister and UML Chair KP Sharma Oli, Nepali Congress President Sher Bahadur Deuba, General Secretaries Gagan Thapa and Bishwaprakash Sharma, Finance Minister Bishnu Paudel, Foreign Minister Arju Rana Deuba, and PM's Chief Advisor Bishnu Rimal, among others. The Cabinet meeting scheduled for Tuesday was postponed to allow for this lengthy discussion.

Bishnu Rimal, the PM's chief advisor and UML Deputy General Secretary, mentioned that the discussion covered a wide range of topics but did not confirm whether there was complete consensus between the ruling parties on BRI. 

“All topics were discussed in the meeting. It’s too early to draw any conclusions,” Rimal told Ratopati. “We cannot disclose all the agendas publicly right now.”

Rimal further explained that there are many aspects of the two countries' relations, so it is unnecessary to speculate. “It is better not to speak until the results are clear,” he added.

Although the formal schedule for PM Oli’s China visit has not been made public, Foreign Minister Arju Rana is scheduled to visit China on November 30 in preparation for the visit. She will travel to Japan on November 27 and then proceed to China. According to foreign ministry officials, Foreign Minister Rana and Chinese Foreign Minister Wang Yi are scheduled to meet in Beijing on December 1.