Connect with us

Nepal, China agree to trade fuel on long term basis

Gorkha Post

Published

on

KATHMANDU — Nepal and China on Friday agreed to have a long term trade petroleum products, including cooking gas, petrol and diesel, and enhance trans-Himalayan network to help two-sided trade.

An accord to this effect was reached during a meeting between Deputy Prime Minister and Minister for Foreign Affairs Kamal Thapa and his Chinese Foreign Minister Wang Yi in Beijing on Friday. DPM and Foreign Minister Thapa is on a week long visit (Dec 24-29) to China.

The two sides sealed an eight-point deal during a bilateral meeting of Deputy PM and Foreign Minister Kamal Thapa and his Chinese counterpart Wang Yi in Beijing on Friday afternoon.

After Nepal proposed to import fuel from the northern neighbor, Chinese side expressed its readiness to jointly examine pricing, transportation and logistics for the same.

“China has advised the respective companies of the two countries to jointly examine the matters relating to price, transportation and other logistics,” the Ministry of Foreign Affairs said in a statement.

The statement stated that China has expressed its willingness to seriously examine Nepal’s proposals for the import of petroleum products from China and has advised the respective companies of the two countries to jointly examine the matters relating to price, transportation and other logistics.

Earlier in the day, Finance Secretary Lok Darshan Regmi and Zhang Xiangchen, Vice Minister of Commerce of China, signed the Agreement on Economic and Technical Cooperation.

Chinese Foreign Minister Wang told reporters that Beijing was assessing how it could support Nepal in addressing its energy needs.

He said China had a strong desire to see a peaceful, stable and prosperous Nepal and assured Thapa of support for Nepal’s development endeavors.
According to MoFA, the two countries also agreed to upgrade and make operational existing border points and develop other crossing points to promote connectivity.

China would make available 900 million RMB (approx Rs 14.75 billion) as grant assistance for the implementation of the projects of repair and maintenance of Araniko Highway and other projects of interconnection and interworking. This assistance was announced by the Chinese President during his meeting with his Nepalese counterpart in March 2015 in Boao, Hainan.

During the bilateral meeting, Chinese side invited Prime Minister KP Sharma Oli to visit China at an early date and expressed likelihood of a high-level visit from China to Nepal in 2016.

Continue Reading

Economy

Govt decides to award Budhi Gandaki Hydel project to Chinese firm again

Gorkha Post

Published

on

KATHMANDU — The government has decided to award contract for the construction of the 1,200-megawatt Budhigandaki hydropower project, a national pride project, to China Gezhouba Group Corporation (CGGC) once again.

A Cabinet meeting on Friday has decided to award the contract for the project to CGGCL reverting the erstwhile Sher Bahadur Deuba government’s decision to develop the 1200MW project with internal resources.

The Cabinet meeting has directed the Energy Ministry to initiate the process to award the project to the Chinese company.

Following the government decision, the Energy Ministry will now invite the Chinese company for talks and prepare a draft of the memorandum of understanding (MoU) before signing it, according to multiple sources at the ministry.

As per the Cabinet decision, the ministry has been asked to hold talks with the Gezhouba, prepare a proposal, and strike a deal to execute the $2.5 billion reservoir project.

Earlier on May 15, 2017, the Pushpa Kamal Dahal-led government had awarded the contract to construct the Budhigandaki project to CGGCL, juat nine days before he was to resign from the PM’s post.

The Dahal-led government had awarded the contract to CGGCL at a cost of Rs 260 billion as per a study carried out by a French company, Tractebel Engineering.

The agreement, however, invited controversy as the project was handed to the Chinese company without initiating a competitive bidding process.

The Budhi Gandaki hydel project has been touted as a key project to resolve the perennial power crisis in the country. The government has allocated Rs18 billion for compensation payments and operational expenses for this fiscal year.

The Gorkha and Dhading district administration offices are currently distributing compensation to owners of the land taken over by the project.

More than 8,000 households will be affected by the project, according to the latest report.

Continue Reading

TOP PICKS