Kathmandu, August 16: Nepal and China has signed three pacts to further boost their ties in the power and energy sectors. The pacts were signed to undertake a feasibility study to excavate natural gas and petroleum in the Himalayan country, including in the southern Terai plains.
According to Nepal's foreign ministry, the agreements that were signed cover economic and technological cooperation, oil and gas resources exploration, and promotion of investment.
A framework agreement on promotion of investment and economic cooperation concerns tapping Chinese private as well as public assistance in various projects including infrastructure development, road, railway, transmission line, tourism, and cross-border grids. Under the framework, both the sides reached agreements on building hydropower projects.
“China is ready to help Nepal increase its self-sufficiency on energy,” Wang was quoted by Xinhua as saying.
As well as the aid package, China agreed to provide Nepal with a grant to help it restore border bridges and facilities at Tatopani port a joint venture development project between the two countries that were damaged in the earthquake in April 2015.
Meanwhile, China is vigorously pushing forward the ‘Belt and Road Initiative’, strengthening its relations with nations along the route. These efforts to enhance relations with South Asian nations will also mean more competition between China and India, to gain a more favourable and active position in the Doklam stand-off.