Congress reaffirms stance on BRI financing: Grants only, no loans

Kathmand, December 9 — The Nepali Congress has stated that it will only accept grants in the agreements related to projects under the Belt and Road Initiative (BRI).

The decision was made in a meeting of the party's central working committee on Monday, which concluded that the party’s stance remains unchanged from the past—that it would accept grants, not loans, in any agreement.

This follows the statement made during Prime Minister KP Sharma Oli's visit to China, where it was mentioned that agreements could include not only loan financing but also grants.

After the meeting, Congress spokesperson Dr. Prakash Sharan Mahat explained that the agreement under the BRI now specifies aid financing instead of grant financing, allowing for the execution of projects with grants.

"The agreement has shifted from grant financing to aid financing," Dr. Mahat said. "And within that, there will be grants."

He added that although an agreement on BRI has been made, separate agreements would still be needed for each project, and Nepal would only accept grant-based plans, not loans.

He also pointed out that Nepal is not in a position to accept loans from any country or donor agency, citing the example of the Pokhara Airport, which was built with loans and has not yet yielded the expected results.

"Our position remains that we will only accept grants. This is not just with regard to the Chinese government, but in future as well. Loans with conditions often come with numerous terms and do not benefit the country,"

Mahat added, "We cannot accept loans with conditions."