Nepal-China sign MoU on OBOR

Kathmandu, May 12: Nepal and China Friday signed the Memorandum of Understanding (MoU) on cooperation under the Belt and Road Initiative amid a ceremony organised at the Ministry of Foreign Affairs (MoFA) at Singha Durbar.

After months of efforts, Nepal finally signed the MoU just days ahead of the Belt and Road International Summit being organised in Beijing, China.

Foreign Secretary Shankar Das Bairagi and Chinese Ambassador to Nepal Yu Hong signed the MoU on behalf of their respective governments.

Deputy Prime Minister and Minister for Finance Krishna Bahadur Mahara and Minister for Foreign Affairs Dr. Prakash Sharan Mahat were present on the occasion.

Proposed by Chinese President Xi Jinping in 2013, the initiative is also known as One Belt One Road (OBOR), the Silk Road Economic Belt or the 21^st-century Maritime Silk Road.

Nepal agreed to the OBOR in principle in 2014, and Prime Minister Pushpa Kamal Dahal Prachanda had consented to sign the MoU during his visit to the northern neighbour in March this year.

“The major thrust of the MoU is to promote mutually beneficial cooperation between Nepal and China in various fields, such as the economy, environment, technology and culture,” said the MoFA in a press statement.

It also said that the MoU aimed at promoting cooperation on promoting connectivity of facilities, trade connectivity, financial integration and connectivity of the people.

The MoU seeks to strengthen cooperation in connectivity sectors, including transit transport, logistic systems, transport network and related infrastructure development, such as railways, roads, civil aviation, power grids, information and communication.

It also will promote people-to-people exchanges at different levels between the two countries.

Policy coordination, facilitating connectivity, unimpeded trade, financial integration and people-to-people bonds are the five major cooperation priorities of the initiative.

The ministry said that the signed MoU contained detailed framework for mutual cooperation in line with the MoU signed between the two neighbours in December 2014.

Chinese Ambassador Yu had earlier said that the initiative was a way for win-win cooperation that promotes common development and prosperity as well as peace and friendship by strengthening exchanges and cooperation.

About 100 countries have expressed their intention to support and jointly contribute to the initiative while more than 40 countries and international as well as regional organisations have signed cooperation agreements with China for the initiative.

While Nepal can benefit from the advanced technology and financial capacity of China, the initiative will provide Nepal the opportunity to have access to about 70 countries in and around the network, and open new avenues of trade and investment.

Nepal has received Chinese investment commitments through the OBOR even before the signing of the MoU.

Chinese businessmen are investing in a modern Clean Industrial Park in Damak municipality of Jhapa district, where most of the industries will be established with the Chinese investment.

DPM Mahara is leading a Nepalese delegation that includes Minister for Physical Infrastructure and Transport Ramesh Lekhak and Minister for Information and Communication Surendra Kumar Karki to the Belt and Road Summit being organised in Beijing on Sunday and Monday.