Chinese ambassador Song expresses concern over PM Oli's remarks on BRI

Kathmandu, November 26 — Chinese Ambassador to Nepal, Chen Song, has expressed dissatisfaction with the statement made by Prime Minister KP Sharma Oli regarding the 'Belt and Road Initiative' (BRI).

On Monday, in a discussion with former Prime Ministers and Foreign Ministers, Prime Minister Oli had stated that Nepal would not sign any agreement with China that involves loans. Similarly, during a public gathering organized by the CPN (UML) party in Darbar Marg on Friday, Oli reiterated that Nepal would not take loans under the BRI.

Sources indicate that during a meeting with Foreign Minister Dr. Arju Rana Deuba, Chinese Ambassador Song expressed disappointment after Prime Minister Oli made his public remarks on BRI. According to a source in the Ministry of Foreign Affairs, Ambassador Song pointed out that it is quite different when individuals or party members express opinions on such matters, but for the Prime Minister of the country to make such statements is not appropriate. Song was quoted as saying, "The issue is about discussions on what to do with the BRI, and the Chinese government is ready to engage in such discussions. However, such statements from the head of government without discussions have raised concerns about the effectiveness of the upcoming visit."

China aims to finalize the BRI during Prime Minister Oli's upcoming visit, and a proposal has already been sent from China. However, the details of the proposal have not been disclosed by the Prime Minister's Office. The ruling Nepali Congress party has also suggested making the proposal from China public. One Congress leader remarked, "Whatever documents there are regarding the BRI, they should be made public for the people. The more they are hidden, the more controversy will arise. It would be better to make everything public."

During his visit, Prime Minister Oli has expressed his intention to implement some aspect of the BRI. Sources indicate that while not all BRI projects may be implemented, projects that involve grants will be pursued.

The government's spokesperson and Minister for Communications and Information Technology, Prithvi Subba Gurung, also confirmed this, stating that Nepal will not take loans for BRI projects but could sign agreements for grant-funded projects.

In a program in Dhulikhel, he said, "We will not take loans from any country, but we will accept grants. If China offers grants, we will accept that, and agreements can be made."

Prime Minister Oli is also preparing to sign agreements for grant-based projects under the BRI, though it is not yet clear which projects under the BRI will be grant-funded or loan-funded. The Ministry of Foreign Affairs has indicated that the Prime Minister's Office is working on this matter.

Congress spokesperson Dr. Prakash Sharan Mahat pointed out that while an agreement was made in 2017 for the BRI, it did not specify whether it would involve loans or grants. "At that time, there was only an understanding to bring the BRI projects to Nepal, and discussions about the modalities were to be held later," he said.

Mahat further noted that there are various projects under BRI, but it is still unclear which ones will be grant-funded and which will be loan-funded.

After Prime Minister Oli's statement that Nepal would not take loans under the BRI, the Chinese have shown less enthusiasm for the visit. China is prepared to offer loans for BRI projects, but not grants. A Chinese expert mentioned, "China cannot provide grants for BRI projects, but it could reduce the interest rates on loans. China is ready to negotiate on that, but it is not prepared to provide grants as some leaders have suggested."

Apart from BRI, China has already made agreements with the Nepalese government on several projects to be funded by grants. However, the Nepalese government has failed to focus on implementing these grant-funded projects, according to this expert. He claimed that Nepal has been pressuring China to convert BRI into grants instead of focusing on the grant-funded projects that have already been agreed upon.

During his visit, Chinese President Xi Jinping had announced billions of rupees worth of projects, but the Nepalese government has failed to implement them. Additionally, several MOUs have been signed between China and various ministries in Nepal, but these too remain stalled, leaving China unwilling to convert BRI projects into grants.