NC urges PM Oli to accept BRI projects only as grants

Kathmandu, November 27 — The Nepali Congress (NC), a coalition partner in the government, has increased pressure on the administration to accept projects under China's ambitious Belt and Road Initiative (BRI) only as grants, rejecting the option of loans.

Senior leaders, including NC President Sher Bahadur Deuba, Vice President Purna Bahadur Khadka, General Secretaries Gagan Thapa and Bishwaprakash Sharma, Foreign Minister Arzu Rana Deuba, and Home Minister Ramesh Lekhak, have been holding continuous meetings in recent days to deliberate on the issue. Following these discussions, the party has forwarded its recommendations to the government.

Party spokesperson Dr. Prakash Sharan Mahat stated that the Nepali Congress firmly opposes taking loans under the BRI. Citing past instances of unimplemented projects with China, the party concluded that acquiring loans under the initiative would place an unnecessary financial burden on the country.

"Our position is clear: we will accept grants, but loans are not suitable," Mahat emphasized. He added that the party has also advised the government on the basis for negotiating agreements under the BRI.

Mahat explained, "We had an MoU before; now we must focus on details. Projects like tunnels, roads connecting border points, and other connectivity initiatives can be implemented under BRI with grant financing or technical support. This is the suggestion we have given to the Prime Minister. Ultimately, it is the government's decision, but we have firmly stated that loans are not acceptable."

Nepal expressed its support for the BRI in principle in 2014. On May 12, 2017, Nepal and China signed a framework agreement for the initiative. The agreement was signed when the Nepali Congress was leading the government, with then-Foreign Minister Prakash Sharan Mahat signing the document.

Prime Minister KP Sharma Oli has publicly expressed reservations about taking loans under the BRI. Speaking at a party rally in Kathmandu last Friday, Oli stated, "We will avoid taking loans as much as possible. At this moment, we neither have the mindset nor the capacity to take loans. We need to focus on increasing production."

Prime Minister Oli is set to visit China in the coming days, where further agreements on advancing BRI projects are expected to take place. The visit is anticipated to address the future of Nepal's participation in the initiative and the nature of project financing under it.