- Nepal new government is reviewing infrastructure deals signed with China for transparency and accountability.
- Probe focuses on delayed projects, financial concerns, and assessing alignment with Nepal’s long-term national interests.
- Government pauses new agreements while evaluating existing deals to ensure sustainable and balanced foreign cooperation strategies.
The government of Nepal has established new policies to assess all infrastructure contracts which the country signed with China. The assessment is being conducted because there are doubts about the financial sustainability of multiple important projects which were developed during previous government terms and which include China’s Belt and Road Initiative (BRI) projects.
A high-level committee has been established by authorities to investigate project status, determine reasons for delays, and evaluate project alignment with Nepal's strategic national goals.
The projects which researchers are currently evaluating have encountered delays which have persisted since their initial announcement several years ago. The proposed Kerung–Kathmandu railway project which first began development between 2016 and 2017 has remained at the feasibility stage because of its technical and financial difficulties.
The Budhi Gandaki Hydropower Project has undergone multiple cancellations and restarts which have resulted in a state of complete inactivity that has persisted without development during the last several years.
The implementation of cross-border transmission lines and northern highway connectivity and infrastructure development at the Rasuwagadhi–Kerung border has progressed at a slow rate while some projects remain uncompleted.
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The government’s decision shows an attempt to review existing deals while creating more profitable sustainable partnerships for future work. The officials announced their intention to end all negotiations with China until they finish their evaluation process which demonstrates their careful method for handling international investments and building infrastructure partnerships.
The administration supports this policy change because it complements their plan which seeks to increase government operations through better transparency and effective control.
The project delays create additional problems which involve the rising economic ties between Nepal and China that particularly affect trade and infrastructure funding. Analysts note that such imbalances could pose long-term risks if they remain unaddressed and require proper management.
The government wants to establish a balanced international cooperation system through two actions which involve checking current agreements and stopping future commitments.
The review establishes an essential milestone that advances Nepal's progress toward developing its foreign affairs and economic development policies. The country aims to enhance its infrastructure partnership management through better oversight and accountability systems which will help it achieve maximum national advantages while preserving its positive diplomatic ties with China.