Nepal signs BRI Cooperation Framework

Nepal has officially signed the Belt and Road Initiative (BRI) Cooperation Framework during Prime Minister KP Sharma Oli’s visit to China, advancing Nepal’s participation in the ambitious Chinese-led initiative. Nepal initially joined the BRI in 2017, but formalizing the framework was delayed until now.

The signing, originally scheduled for Tuesday, was postponed due to disagreements over the terminology in the draft agreement. The primary debate revolved around the financial cooperation modality, specifically whether to include the term “grant.” After extensive discussions, a compromise was reached on Wednesday, with both sides agreeing on the term “aid assistance financing.”

A senior Nepali official involved in the negotiations confirmed that the framework agreement had been finalized. Initially, Nepal proposed the term “grant financing cooperation modality,” which China countered with “assistant financing modality.” The mutually agreed-upon term “aid assistance financing” emerged as a resolution.

Nepal’s negotiation team was led by Prime Minister Oli’s economic and development advisor, Yubaraj Khatiwada, and Foreign Minister Arzu Rana Deuba. The Chinese delegation was represented by senior officials from the Ministry of Foreign Affairs.

This agreement marks a milestone in Nepal-China relations, laying the foundation for deeper economic cooperation under the BRI, a flagship initiative spearheaded by Chinese President Xi Jinping.