No provision of loan in BRI Framework : Foreign Minister

KATHMANDU, DECEMBER 8: Minister for Foreign Affairs Dr. Arzu Rana Deuba has clarified that the recently signed Belt and Road Initiative (BRI) Framework Agreement between the Government of Nepal and China does not include any provision for obtaining loans.

Speaking at Tribhuvan International Airport (TIA) before departing for the Netherlands to present Nepal’s stance on climate change at the International Court of Justice (ICJ) yesterday, she addressed misconceptions surrounding the agreement. She emphasized, "We have signed a cooperation-based project under the BRI, which does not mention loans anywhere."

Dr. Rana criticized the superficial comments being made about the agreement without proper study and explained that any projects undertaken within the BRI framework would proceed only with mutual consent between Nepal and China. "The decision to take a loan will depend on the consent and request of the recipient country. If Nepal does not require a loan, no other party can force it upon us. It is baseless to claim that the government has committed to taking loans through this agreement," she said.

The Minister further clarified that the projects agreed upon under the BRI are focused on grants and pertain to the 'Global Development Initiatives.' They do not involve security or strategic concerns. Minister Rana also disclosed that she had informed the Chinese Foreign Minister that Nepal is currently not in a position to take loans, a point acknowledged before the framework was finalized.

Under the BRI framework, Nepal has prioritized trade, air and land connectivity, infrastructure development, and financial cooperation with China, according to the Minister.

Climate Change Advocacy at the ICJ

Minister Rana departed for the ICJ day, leading a Nepali delegation to advocate for compensation for Nepal's climate change impacts. She highlighted that this marks the first time Nepal will present its position on the adverse effects of climate change and the urgent need for accountability from developed nations with higher carbon emissions.

She has been vocal about the disproportionate burden placed on countries like Nepal due to the carbon emissions of wealthier, industrialized nations, asserting that Nepal is entitled to compensation for these impacts.

The delegation includes Udaya Raj Sapkota, Secretary at the Ministry of Law, Justice, and Parliamentary Affairs, and officials from the Ministry of Foreign Affairs.