A rising Chinese profile in Nepal
Beijing will disburse a concessionary loan of $200 mn to Kathmandu to be used for the construction of the upper Trishuli hydropower project, reports Anirban Roy.world Updated: Dec 20, 2007 23:04 IST
Rising China is raising its profile in Nepal, with Beijing signing an agreement to disburse a concessionary loan of $200 million to Kathmandu to be used for the construction of the upper Trishuli hydropower project and other development programmes.
China will also extend a grant of Rs (Nepali) 428.5 million for the implementation of mutually agreed development projects. The grant assistance is part of the economic and technical cooperation mechanism between the two governments.
“We are thrilled because the Chinese government has been kind to us to provide the concessional loan,” Tanka Karki, Nepal’s ambassador to China, said. So far, China has been very selective in supporting development projects in Nepal.
In fact, China has been seen in a different light in Nepal, especially after the poor government was forced to pay a huge penalty for delayed payment in an aircraft deal.
And now, competing with India’s generous aid, the Chinese government from this year, started to provide “extra” financial assistance to Nepal for infrastructure development projects.
So far, India has been the largest donor in Nepal, and has been playing a pro-active role in development of basic infrastructure, including road, bridges, schools, colleges, hospitals and libraries.
In July this year, Wang Chao, the Chinese minister for commerce had promised Nepal government to provide financial support for infrastructure development.
With the Maoists joining the political mainstream, the Chinese government and financial institutions have suddenly become proactive in extending financial support to Nepal, especially in some large hydroelectric projects.