The Nepali government has made a significant decision, declining a long-awaited economic and technical package from the Chinese government for the Araniko Highway upgrade. Originally promised nine years ago, the aid package, amounting to 900 million RMB, was intended to enhance transport infrastructure and upgrade the 115 km Araniko Highway, a crucial route linking Nepal with China. However, the Nepali government, citing delays in the disbursement of funds, has opted to utilize its own resources for the project.
During a recent event organized by the Centre for Social Inclusion and Federalism (CESIF) in Kathmandu, Madhav Sapkota, a lawmaker from Sindhupalchok district, expressed frustration over the prolonged wait for the promised aid. He stated that despite appeals to Chinese authorities, engagements with Nepal’s Ministry of Finance, and interactions with the Chinese Embassy, no progress was made. Sapkota highlighted efforts made to secure the funds, including appeals to Chinese authorities and engagements with Nepal’s Ministry of Finance and the Chinese Embassy, all of which yielded no progress.
The delayed aid has prompted Nepal to proceed independently with the project. The Nepali government has allocated Rs3.6 billion from its own budget to carry out maintenance along a 26-km section of the highway and manage landslides. The comprehensive upgrade promised by China did not arrive in time, prompting Nepal to proceed independently.
Despite starting the Long-Term Maintenance Project for the highway following damage caused by the 2015 earthquakes, the comprehensive upgrade promised by China did not arrive in time, prompting Nepal to proceed independently.
Sapkota emphasized the strategic significance of the Tatopani border point and its potential to facilitate trade, once infrastructure challenges are addressed. However, he also expressed concerns over job losses among Nepalis due to automation by Chinese companies operating in Nepal.
The CESIF-hosted seminar focused on Nepal’s borderland issues within its foreign policy discourse. Anish Tiwari highlighted the stark difference between bustling trade on China’s side of the Tatopani border and the quieter situation on Nepal’s side. He specifically highlighted China’s tightened restrictions on Nepali goods and people, attributing this to suspicions related to followers of the Dalai Lama.
During the panel discussion, experts underscored the need for more parliamentary attention to borderland issues, which involve complex people-to-people relations beyond state interactions. Raj Kishor Yadav highlighted a “fear psychosis” among Nepali representatives, who face labels of being anti-national or pro-India when raising genuine concerns. Another resident, Liladevi Boikhim Limbu spoke about operational challenges at northern border points between Nepal and Tibet, urging concerted efforts by stakeholders to restore cross-border movement and trade.
Chanda Chaudhary stressed the need for Nepali policymakers to comprehend the intricate cross-border relations with India, emphasizing their deep-rooted complexity.
