KATHMANDU: Nepal and China are all set to identify projects to be developed under the country’s reconstruction efforts, particularly in the northern part.
Assistant Commerce Minister of China Zhang Xiangchen arrived in the Capital on Tuesday to discuss Chinese assistance in Nepal’s reconstruction, and bilateral trade promotion and facilitation.
According to government officials, Chinese succour will mainly be used in three areas—in improving infrastructure, maintenance and upgradation of trade and transit points, and building new houses and buildings in Sindhuplachok and Rasuwa districts.
Madhu Marasini, chief of the International Economic Cooperation Coordination Division at the Ministry of Finance, said that Chinese assistance announced during the International Donors’ Conference on Nepal’s reconstruction will be used to maintain the damaged Araniko Highway, a major route that links Nepal to China.
Following the April 25 Great Earthquake and its subsequent aftershocks, several sections of Araniko Highway suffered significant damages, requiring billions to rebuild it. The Customs Office located along Nepal-China border in Tatopani has also been majorly affected due to landslides after the quake. This has prompted Nepali traders to route their containers from Calcutta port in India.
Even though the Chinese side has pledged to maintain the highway and customs office, continuous landslide triggered by heavy rainfall has prevent construction work.
The Nepal-China trade route in Rasuwa, Kerung, is also listed for Chinese assistance. The recently opened route suffered a similar fate due to subsequent landslides.
“We are also discussing on Chinese assistance to build new houses in Sindhupalchok and Rasuwa. Though in principal, the Chinese side will help us to build new houses and buildings, we are yet to reach an understanding on the numbers and areas,” said Marasani.
The Chinese side is set to put forth its reconstruction proposal during talks with Finance Secretary on Thursday. The 11-member Chinese delegation will visit some of the quake-affected areas in the Valley on Wednesday.
During the International Conference in the Capital, China had pledged Rs76 billion for reconstruction in Nepal, of which Rs48 billion was grant.
Nepali officials said matters including signing of Bilateral Investment Promotion and Protection Agreement with China are also on the agenda.
We are informally holding negotiations for projects with the Indian side, said Marasini, adding that they hope a delegation from the European Union will soon arrive in Kathmandu with the same objective.
The finance ministry is also holding talks with the World Bank and the Asian Development Bank for collaboration on reconstruction works. The ministry has already signed a project agreement with ADB.
