Seven years and seven months after Nepal signed the Memorandum of Understanding (MoU) for the Belt and Road Initiative (BRI), Prime Minister KP Sharma Oli visited China in the first week of December and signed the "Framework for Belt and Road Cooperation" in Beijing. A joint statement issued on December 4, officially confirmed Nepal and China's agreement on the BRI cooperation framework.
Even the Nepali Congress, which had previously taken a firm stance against accepting Chinese loans, insisting only on grants, agreed to the BRI framework. Under this framework, any bilateral cooperation between Nepal and China will be recognized under BRI, and both loans and grants can be considered BRI projects.
Three months after the agreement, questions remain about whether BRI implementation will move forward or remain stalled like the 2017 MoU. Ten projects have been included under the BRI framework, and there is widespread curiosity about their progress in the last three months.
Based on recent information from the International Economic Cooperation Coordination Division of the Ministry of Finance, the Nepal Investment Board, and the Department of Roads, here’s a briefing on the current status of BRI projects:
Tokha-Chhahare Tunnel
A strategic route connecting Kathmandu to Kerung, China, this tunnel’s feasibility study is pending. China has proposed an environmental impact assessment first, but Nepal insists on feasibility studies first. Discussions continue.
Hilsa-Simikot Road
Part of the Karnali Economic Corridor, this 95 km road aims to link China’s Hilsa to Nepalgunj, India border. A feasibility study agreement exists, but China’s response on motorable bridges is awaited.
Kimathanka-Khandbari Road and Bridge
A key route in the Koshi Corridor, Nepal has submitted a concept paper. While the Nepali Army is clearing the track, no vehicular progress exists yet.
China-Nepal Cross-Border Railway
A priority project, pre-feasibility studies are done. A new study, funded by China, is underway, with aerial surveys completed. Drilling and soil testing are expected by 2026.
Kerung-Rasuwagadhi-Chilime Transmission Line
This 220 kV line could open electricity trade with China. Proposals are exchanged, but no concrete agreement exists. A high-level meeting in China is expected soon.
Madan Bhandari University
Proposed during former President Bidya Bhandari’s China visit, discussions continue on location (initially Makawanpur, now Kavre). No site visit has occurred yet.
Stalled Projects
China-Nepal Friendship Industrial Park (Jhapa): Even though Prime Minister Oli laid a foundation stone for project, no Project Development Agreement (PDA) has been signed.
Amaragadhi City Hall, Kathmandu Scientific Center, Jhapa Sports Complex have not gained momentum, with no formal communication or studies initiated.
While progress on some projects moves at a snail's pace, others remain stuck in bureaucracy, raising questions about BRI’s tangible outcomes in Nepal.
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