Nepal, China agree to conclude commercial deal on petroleum supply from China to Nepal
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.
Both sides to strengthen connectivity
Regarding the Nepal-China bilateral cooperation, both Nepal and China agreed to synergize each other’s development planning, formulate appropriate bilateral cooperation programs and to carry out major projects under the framework of the Belt and Road Initiative. Both countries agreed to strengthen connectivity, further step up the land and air links and improve the land transport infrastructure.
China to accelerate feasibility study on Araniko Highway
Similarly, China agreed to accelerate the feasibility study on the Araniko Highway Repair and Opening Maintenance Project and the Repair and Opening Maintenance Project of Syaphrubesi-Rasuwagadhi Highway, build the bridge over Karnali River at Hilsa of Pulan/Yari port. The two sides also agreed to accelerate the upgradation of Kathmandu Ring Road 1st phase by solving the pending issues and start the project feasibility study of 2nd phase, at appropriate time, and the Nepal will provide necessary cooperation to implement this project.
Exchanging ideas on constructing cross border railways
The relevant authorities of both sides would exchange ideas and proposal on constructing cross border railways and railways network in Nepal, and support enterprises to start related preparatory work as soon as possible. Both sides exchanged views on facilitating Chinese investment in key areas including infrastructures by encouraging the Chinese investment in Nepal, as per the laws and regulation of Nepal. Both sides agreed to explore establishing cross border economic cooperation zones via existing frontier ports and to speed up opening up other frontier ports and trade points as mutually agreed upon. The two sides expressed satisfaction on the conclusion of Agreement on Transit Transport and directed the competent authorities to immediately start negotiation to develop a protocol which will be an integral part of the Agreement. Both sides agreed to negotiate on the Agreement on Boundary Management System.
China to assist on Nepal’s socio-economic development
Similarly, the Chinese Government would continue to provide assistance to Nepal’s socio-economic development within its ability. China would implement the 3 billion RMB grant assistance from 2016 to 2018 to support the post disaster reconstruction of Nepal, to carry out 25 key projects in areas covering infrastructure construction, recovery of people’s livelihood in quake-stricken areas of northern Nepal, repair of cultural and historic sites, capacity building in disaster prevention and control as well as medical and public health cooperation.
China to provide more than 32,000 sets of household solar-power generation system
China also agreed to provide more than 32,000 sets of household solar-power generation system to Nepal, to build small-size education and public health facilities in several selected locations over Nepal, and to enhance cooperation on disaster preparedness and mitigation.
The Chinese government agreed to carry out Rain Water Harvesting Project and other livelihood projects in Nepal to improve the living standard of the local people. The China would further enhance cooperation to the Nepali side for the infrastructure development as well as social and economic development of the people residing in the bordering districts of Nepal and China.
Likewise, the two sides agreed to strengthen cooperation between the law enforcement agencies of the two countries through exchange of information, capacity building and training in this field. Both sides agreed to negotiate Treaty on Mutual Legal Assistance in Criminal Matters and Treaty on Extradition, in order to strengthen cooperation on the administration of border areas and fight against illegal border crossing and transnational crimes.
On the occasion, China welcomed the decision of the Government of Nepal to establish Consulate General of Nepal in Guangzhou, and also agreed to earnestly study Nepal’s proposal of establishing the Consulate General of Nepal in Chengdu. The agreements on the establishment of sister-city relationships between Yusu-Pokhara, Shannan-Bhaktapur and Chengdu-Kathmandu were welcomed by both sides. China encouraged the Tibet Autonomous Region as well as Sichuan, Yunan and Qinghai and other provinces to enhance cooperation as defined by the Government of Nepal.
Moreover, both Nepal and China agreed to further promote cooperation in multilateral forums including in the United Nations on issues of mutual interests. They believed that cooperation among the developing countries on climate change, energy, food security, etc. will enhance and consolidate their solidarity and promote their collective strength in shaping global development agenda.
Remarkable achievements establishment of diplomatic relations
The two countries’ leaders expressed satisfaction over remarkable achievements in cooperation of various fields since the establishment of diplomatic relations between the two countries in 1955, and believed that the bilateral relationship maintained the momentum of healthy development on the basis of the Five Principles of Peaceful Coexistence, which sets a model of harmonious coexistence between countries of different size and social systems.
China welcomes promulgation of constitution in Nepal
China welcomed the promulgation of the constitution in Nepal and regarded it as a historic progress in the political transition of Nepal. It sincerely hoped that Nepal could take this opportunity to realize its political stability and economic development, mentioned the joint statement.
Likewise, both Nepal and China noted that their countries are undergoing various forms of reforms, transformation and development. The China-Nepal relationship has reached a new height, and the two countries are faced with more opportunities of development and prosperity. In this context, both sides would inherit and carry forward traditional friendship and deepen cooperation featuring equality and mutual-benefit to bring more benefits to both countries and their peoples.
Commitment to respect each other’s independence, sovereignty, territorial integrity
Both Nepal and China reiterated their firm commitment to respect each other’s independence, sovereignty and territorial integrity, respect and accommodate each other’s concerns and core interests. Nepal reiterated its commitment to one China Policy. It firmly supports the efforts made by the Chinese side to uphold state sovereignty, national unity and territorial integrity, and does not allow any forces to use Nepali territory for any anti-China or separatist activities.
Similarly, the Chinese side firmly supports and respects Nepal’s own choice of social system and development path, and the efforts made by Nepal in upholding its sovereignty, independence, territorial integrity, national unity and stability.
Exchanging high level mutual visits focusing key issues of common interests
They believed that the high level contacts are of special importance to the development of bilateral relations. The two sides agreed to maintain the momentum of high level mutual visits, and have meetings between the leaders on the bilateral and multilateral occasions to share views on important issues of common interests. The two countries agreed to make full use of existing mechanisms, including the Diplomatic Consultations and the Joint Economic and Trade Committee meeting, to expand exchanges and cooperation between government departments, legislatures and political parties.
Enhancing cooperation within SCO, SAARC and regional forums
“The two sides positively view and support each other’s participation in the regional cooperation process, and agreed to enhance coordination and cooperation within SCO, SAARC and other regional cooperation mechanisms within the agreed frameworks and guidelines,” the statement read.
In order to facilitate trade, tourism and investment between the two countries, the China is to support Chinese-funded banks to open branches in Nepal in accordance with relevant policies and regulations. In this context, the Nepal is expected to provide policy and regulation facilities for Chinese funded banks to enter in to Nepali market.
Prime Minister KP Sharma Oli expressed his appreciation for the warm and friendly hospitality extended by the Chinese side, and extended invitation to the Chinese leaders to visit Nepal within this year.
The Chinese leaders expressed thanks for the invitation and agreed to visit Nepal at mutually convenient dates which will be worked out through the diplomatic channels. RSS