Nepal and China on Friday described their plan to extend the Chinese railway network to Kathmandu as the “most significant initiative” in bilateral relations as it would lead to a “new era of cross-border connectivity”.
The two countries agreed to execute several projects under China’s Belt and Road Initiative that encompass ports, roads, railways, aviation and communications within the overarching framework of a “Trans-Himalayan Multi-Dimensional Connectivity Network”.
A joint statement issued during the Prime Minister KP Sharma Oli’s ongoing visit to China said the two sides agreed to take practical measures to promote cooperation under several MOUs, including one for conducting a feasibility study for the Kerung-Kathmandu railway link.
Referring to the proposed railway link, the joint statement said: “They underscored it as the most significant initiative in the history of bilateral cooperation and believed that it would herald a new era of cross-border connectivity…The Chinese side agreed to provide such support as in technology and personnel training.”
Other MoUs signed during Oli’s visit cover the rebuilding of two bridges and a protocol on the use of Tibetan highways for cargo transport.
The two sides also finalised pacts for establishing a mechanism between the foreign ministries for implementing cooperation programmes and projects in Nepal, energy cooperation, and economic and technical cooperation.
They also agreed to deepen cooperation in economy, trade, investment, industrial capacity, and post-disaster reconstruction, according to the joint statement.
Other key takeaways of Oli’s visit are the early finalisation of a joint feasibility study for a free trade agreement and establishing cross-border economic cooperation zones.
The Chinese side agreed to support Chinese-funded banks in opening branches in Nepal to promote trade, tourism and investment. They also agreed to negotiate financing modalities for projects proposed by Nepal for road and railway connectivity, hydropower and transmission lines.
