Kathmandu: Nepal and China signed the “Framework for Belt and Road Cooperation” on Wednesday, replacing the term “grant financing” with “aid financing.” This agreement, formalized during Prime Minister KP Sharma Oli’s visit to China, marks a shift in the financial terms for projects under the Belt and Road Initiative (BRI).

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• Nepal and China signed the “Framework for Belt and Road Cooperation” on December 4, 2024, during Oli’s visit to Beijing.
• The agreement replaces the term “grant financing” with “aid financing,” which is more flexible and includes both grants and loans.
• The change follows China’s rejection of Nepal’s proposal to avoid loans for BRI projects.
• The new framework was formalized after informal discussions between Nepal and China on December 3, 2024.
• The revised financing term provides Nepal with more options for funding BRI projects, including loans.
• Nepal and China aim to sign a Memorandum of Understanding (MoU) on establishing the Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN).
• Nepal’s foreign ministry confirmed the agreement, with key officials signing the framework.
• Prime Minister Oli emphasized strengthened economic ties with China, expressing optimism for future cooperation under the BRI.
• Nepal is preparing a list of BRI projects that may be funded solely through grant financing.
• The agreement concludes Oli’s official visit to China, which also included high-level meetings with Chinese leaders, including President Xi Jinping.