Nepal urges China to convert PIA loan to grant

 Kathmandu, Aug. 22

The Government of Nepal has requested China to convert the loan taken to build the Pokhara Regional International Airport into a grant.

The Ministry of Finance (MoF) has also written a letter to the Chinese side requesting to convert the loan into a grant. In an event held at the MoF on Thursday, Dhani Ram Sharma, Chief of the International Economic Cooperation Coordination Division at the MoF, handed over the letter to Yang Weiqun, Vice-Chairman of the China International Development Cooperation Agency.

Speaking on the occasion, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, asked the Chinese side to pay special attention to the economic situation of Nepal, and to convert the loan taken during the construction of Pokhara Regional International Airport into a grant

For Pokhara Airport, Nepal has received a loan equivalent to Rs. 25.88 billion (as of today's exchange rate of Chinese Yuan) from China's Exim Bank.

A loan agreement for the construction of Pokhara Airport was signed in 2016 and the construction work was started immediately.

Nepal also requested China for the latter's support in the expansion of 8.2 km of Kathmandu Ring Road from Kalanki to Maharajganj, upgrading of Hilsa-Simikot road section to two lanes, construction of Integrated Check Post (ICP) and Inland Container Depot (ICD) at Korla border in Mustang and maintenance and improvement of Araniko highway and feasibility of landslide control.

Four separate cooperation letters have been signed for these projects.

On behalf of the Government of Nepal, Finance Secretary Dr. Ram Prasad Ghimire, and on behalf of Chinese government, Weiqun signed the agreements.

DPM Paudel has also requested for the Chinese government's support in preparing the Detailed Project Report (DPR), making feasibility study and constructing the infrastructure of Bir Hospital and Madan Bhandari University of Science and Technology.

Vice-chairman Weiqun informed that the request has been received from the Government of Nepal and the Chinese side will study it and proceed with the further process.

Published in The Rising Nepal daily on 23 August 2024.