Only grant projects accepted in Belt and Road Initiative: Nepali Congress

The Nepali Congress, which is part of the ruling coalition, on Monday said that the country can only accept agreements under the Belt and Road Initiative (BRI) if they are based on grants.

A meeting of the party's Central Working Committee held at the residence of party president and former prime minister Sher Bahadur Deuba said that the BRI projects should not be financed through loans.

The party's statement came days after Prime Minister K P Sharma Oli visited China where the two countries signed the BRI Cooperation Framework.

Following the meeting, Nepali Congress spokesperson Prakash Sharan Mahat told the media that the party's position remains unchanged BRI projects should be funded only by grants.

Mahat said that during Prime Minister Oli's visit to China, the agreement for financing was referred to as an assistance and not a loan. He said any future BRI projects must follow this framework and be funded through grants.

Nepal Foreign Secretary Amrit Bahadur Rai inked the framework agreement with Liu Sushe of the National Development and Reform Commission of China. The framework agreement has paved the way for the implementation of BRI projects.

Mahat further said that even if a new agreement is made under the BRI, Nepal can only accept projects that are grant-based, not loan-based.

He said that Nepal is not in a position to take loans from any country or donor agency, including the BRI.

Pointing to the Pokhara Regional International Airport as an example, Mahat said that it was built with loan assistance but has not yet brought the expected benefits.

The Pokhara airport was built with loan assistance from China amounting to around Nepalese Rs 26 billion. He warned that Nepal needs to be cautious about seeking loans for development projects.