Kathmandu, March 23: Nepal and China have agreed to conclude a commercial deal on the supply of petroleum products from China to Nepal.
Issuing a 15-point joint statement during Prime Minister KP Sharma Oli’s visit to China, on Wednesday, China has agreed to build oil storage facilities for Nepal, and send experts to Nepal to carry out feasibility study on oil and gas resources research.
To this regard, both Nepal and China encouraged companies to speed up negotiations and concerned agencies to study providing supporting policies on issues of pricing, taxation, transportation, quality control and customs and frontier formalities.
Similarly, they have agreed to establish a Dialogue Mechanism on Energy Cooperation to facilitate the long term planning of cooperation in this area, including trans-border power grid, hydro-power and solar power, etc. The Nepali side agreed to take necessary steps to facilitate Chinese enterprises and their investment in Nepal.
Joint feasibility study of China-Nepal FTA soon
The joint statement further mentioned that in view of the trade deficit of Nepal, the Chinese side would seriously consider to provide the enhanced market access to tradable products of Nepal as contained in the list provided by Nepal. The two sides agreed to start the joint feasibility study of China-Nepal Free Trade Agreement and conclude the study at an early date.
“The Chinese side encourages local government, Chinese enterprises and social groups to tap the potential with the Nepali side on production capacity cooperation and economic and trade cooperation zones building and strengthen cooperation in areas that Nepal has resources and advantages, such as construction materials, water conservation and hydro-power, and organic agriculture,” said the statement.
China to provide financial support for Pokhara Regional International Airport
Likewise, the Chinese side agreed to provide financial support on preferential terms for Pokhara Regional International Airport.
Nepal had requested China to provide assistance for the preparation of Detailed Project Report (DPR) and construction of a dedicated two lanes Kimathanka-Khandbari-Dhankuta Road and upgrade Kathmandu Ring Road 2nd Phase, to provide financial and technical support for the feasibility study and the preparation of DPR of the proposed Rashuwagadi-Kathmandu and Kathmandu-Pokhara-Lumbini Railway Project, to take up 434 MW Arun-Kimathanka Hydro Power Project and 400 KV Cross-Border Transmission Lines Project at Rashuwagadi-Kerung border point and construct 132KV Double Circuit Transmission Lines Monopole Structure around Kathmandu Ring Road.
Nepal has been hopeful that that the China could provide assistance for the establishment of the Madan Bhandari Institute of Technology (MBIT) in Nepal and expansion of the Civil Service Hospital. Nepal had made the request that these projects be taken up as priority ones and funding arrangements would be sought from various sources, and the Chinese side was willing to study earnestly after Nepal provides Detailed Project Proposals of above-mentioned projects.
China for providing Chinese language training for 200 Nepalis
In order to support the recovery of tourism in Nepal, China has shown willingness to provide Chinese language training in Nepal for 200 Nepali tourism professionals in the coming five years, and encourage Chinese enterprises to invest in Nepal’s tourism facilities. It came as per the agreement to support each other’s tourism promotion activities in their respective countries to enhance people-to-people contacts.
Similarly, China was for providing around 400 training opportunities in human resources development and more government scholarships this year to Nepal and welcome more Nepali students to pursue higher education in China through other channels or programs.
China also agreed to hold the Seventh China Festival and Second Kathmandu Cultural Forum within this year, and further enhance China-Nepal cultural cooperation through the platform of Chinese Cultural Centre in Nepal. Nepal is to provide necessary facilities and assistance in this regard.
