Nine Years After Joining China’s BRI, Nepal Still Sees Little Concrete Progress

12 May Kathmandu Nearly nine years after Nepal’s formal entry into China’s ambitious Belt and Road Initiative (BRI), the country has little to show in terms of tangible progress from the deal despite repeated political promises and diplomatic parleys. A recent analysis shows that most BRI projects in Nepal are stuck in negotiations, political debate or implementation uncertainty.

Nepal signed the framework agreement for the BRI with China in 2017, hoping for major infrastructure development, connectivity expansion and economic cooperation. But analysts say the initiative has been mostly symbolic so far.

Nepal’s hopes were high when it joined the BRI that Chinese investment would help transform Nepal’s:

- Infrastructure

- Shipping

– Energy sector

- Trade integration

- International rail projects

The main proposals discussed within the framework included:

- Rail connectivity Kathmandu Kerung

- Road widening projects

- Hydro-cooperation

- power lines

- Industrial infrastructure

The move was also seen as a chance for Nepal to lessen its reliance on a single transit route and improve regional connectivity.

Even after years of meetings, agreements and official visits, Nepal has not been able to move projects from discussion to implementation, experts say.

Reports say:

– Most BRI-linked projects stuck in limbo

- Unclear sources of financing

- absence of political consensus

- Bureaucratic lag delayed negotiations

Even governments regarded as politically close to Beijing were unable to achieve major breakthroughs under the initiative, it is reported.

The most visible project so far of Chinese cooperation remains Pokhara Regional International Airport, which itself has become controversial over concerns of financing and corruption.

One of the great hopes of the BRI was the proposed trans-Himalayan railway linking Nepal with China.

The railway was meant to:

- Increase trade access

- Increase tourism

- Increase regional connectivity

- Reduced costs for transport

But experts say the project faces huge challenges, such as:

- Extremely hard The geography of the Himalayas

- Construction is very expensive

- Concerns about debt sustainability

- Complexity in technology

Experts say that such projects would cost billions of dollars more than Nepal can afford at present.

Nepal’s sluggish move on BRI also has to do with its fragile geopolitics between:

- CHINA.

- India

and maintaining relations with:

- U.S.

- EU

- Other international partners

Foreign policy experts say Nepal has sought to cautiously balance relations without seeming too close to any major global power.

Some analysts say geopolitical competition in South Asia has indirectly made it difficult for Nepal to make decisions on large Chinese-backed projects.

BRI projects in several countries have been criticized for:

- Debt risk

- No transparency

- Economic situation

- Concerns about long-term repayment

This has made Nepal more cautious about seeking large infrastructure loans without clear financial sustainability.

Economists say Nepal now wants:

- Cooperation based on grants

- Small-scale projects

- Finances negotiated and carefully structured

instead of rushing into large, debt-funded projects.

Frequent government changes in Nepal during the last decade also affected policy continuity.

Successive governments tend to:

- Laid out big plans

- Changing priorities after political changes

- Unable to keep up momentum on long-term implementation

According to experts, Nepal’s capacity to effectively implement large international infrastructure deals was hampered by weak bureaucratic coordination and an unstable political environment in the country.

In Nepal, public opinion on the BRI has gradually become more mixed.

Supporters say:

- Big infrastructure opportunities missed in Nepal

- China can help speed up development

- Connectivity projects still needed

Critics say:

- Nepal should not be in debt dependence

- Caution about large geopolitical projects

- Transparency and national interest have to stay priorities

The debate is indicative of Nepal’s larger challenge of reconciling developmental needs with strategic autonomy.

Nine years after joining China’s Belt and Road Initiative, Nepal is still largely at the discussion stage, rather than witnessing major transformative results.

With diplomatic engagement with China still on, the future of BRI in Nepal will likely be determined by political stability, clarity on financing, geopolitical balancing and the country’s ability to move from agreements to real implementation.

Tags: BRI Nepal, China Nepal Relations, Belt and Road Initiative, Nepal Infrastructure, Nepal China Projects

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