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The Centre for Social Inclusion & Federalism (CESIF) held a seminar on ‘The Evolving Nepal-China Relationship: Navigating Challenges & Seizing Opportunities,’ at Marriott Hotel in Kathmandu on Wednesday.

The seminar was divided into three panels: ' Nepal-China Relations: Current Status,’ ‘Looking to the Future: Chinese Initiatives, BRI, GSI & National Security,’ and ‘Politics of Bilateral Relations.’

The seminar was timed to coincide with the Prime Minister's upcoming visit to Beijing this month.

Vijay Kant Karna, Executive Chair at CESIF, began the discussion program with a welcome remark. He pondered the Prime Minister's impending visit and the weight it carries for Nepal-China diplomatic relations.

“The Prime Minister’s visit is seen as an important occasion to resolve the existing issues and strengthen the bilateral ties. It is expected that PM Dahal will hold a discussion on the various avenues of bilateral relationships, including the long-stalled BRI projects and other issues of economic and bilateral cooperation,” he said, reads a statement issued by Centre for Social Inclusion & Federalism.

“While PM Dahal will have a hard time managing the diversified priorities of the parties in the ruling coalition back home while dealing with China, PM Dahal’s visit is expected to bring forth some tangible benefits to strengthen the bilateral relationship and resolve existing differences.”

The first session on ‘Nepal-China Relations: Current Status,’ brought together Ambassador Madhu Raman Acharya, former ambassador of Nepal, Purushottam Ojha, former secretary of the Ministry of Industry, Commerce and Supplies and Avasna Pandey, Lecturer at the Department of International Relations and Diplomacy, Tribhuvan University.

The session was moderated by author and researcher Amish Mulmi.

The session brought to the limelight Nepal’s need to focus on trans-border connectivity for improved cross-border trade, improved B2B movement, and better negotiations through varied forums. "China has been shifting its goalposts regarding its engagement in Nepal.

Earlier China’s engagement was confined largely within arenas of security and trade but now China wants Nepal to be a part of its diverse initiatives – this is directed at realizing its larger geopolitical aims and ambitions," Ambassador Madhu Raman Acharya said.

The second session on ‘Looking to the Future: Chinese Initiatives, BRI, GSI & National Security’ brought together General Gaurav Shumsher JB Rana (Retd.), former Chief of Army Staff at Nepal Army, Ambassador Dinesh Bhattarai, former ambassador of Nepal, Chandra Dev Bhatta, Political Scientist and Public Intellectual and Anil Giri, senior journalist at The Kathmandu Post.

The session was moderated by Ambassador Vijay Kant Karna, Executive Chair at CESIF.

The session brought to attention China’s new global initiatives and their implications for Nepal.

“In the current geopolitical context, Nepal would be wise to stick to its Constitution's principles of Panchasheel and non-alignment. We must be cautious but also flexible in our foreign policy; flexible being the keyword.” Gen. Gaurav Shamsher JB Rana (Retd.) expressed.

The final session on the ‘Politics of Bilateral Relations,’ brought together Shisir Khanal, Member of Parliament, representing Rastriya Swatantra Party, Dr Minendra Rijal, former Defense Minister of Nepal and Nepali Congress leader, Dr Lila Nyaichyai, Professor at the Tribhuvan University and the former member of the Constituent Assembly and Hari Sharma, Executive Director at Purak Asia and a Public Intellectual.

The session was moderated by Dr Govinda Raj Pokharel, former Vice Chairperson of the National Planning Commission and the Central Committee member of the Nepali Congress.

The panelists discussed the necessity to capitalize upon the Nepal-China relations whilst understanding China’s regional and global position.

“There has been a significant shift in the geopolitical landscape when compared to that of the 1950s, 60s – so, drawing parallels between these different contexts to analyze the contemporary geopolitical situation wouldn’t be so apt- and it doesn’t help in our diplomatic endeavors either.” Khanal shared.

The Prime Minister’s upcoming visit to Beijing was agreed by all to be a good opportunity to improve bilateral ties.

Panelists also shared a few priorities for the visit, including the implementation of previous agreements, negotiation for trade facilitation, upliftment of unilateral border control of different border points, and FDI traction.

The seminar event brought together noted intellectuals, academicians, politicians, bureaucrats, and journalists.

Centre for Social Inclusion & Federalism (CESIF) is a not-for-profit, autonomous, and independent private research institution serving the public interest, with significant independence from any interest group. Our mission is to help the government create a democratic, secure, and just society by making informed and transparent decisions about policies and practices.

The Central Investigation Bureau of Nepal Police has submitted an investigation report with opinion to the District Attorney Office, Kathmandu in the 60 kg gold smuggling case.

CIB spokesperson Nawaraj Adhikari said that the CIB has submitted the investigation report to the District Attorney Office with opinion by concluding the investigation.

So far, police have arrested 32 persons and 18 are on the run, the CIB said.

According to the CIB, among the arrestees, 23 are Nepalis and nine are foreign nationals. The Bureau said that 14 foreign nationals and four Nepalis are on the run.

The CIB has recommended to file a case against the accused on organized crime, gold smuggling and other offenses under the Rastra Bank Act.

The Revenue Investigation Department on July 19 had confiscated the smuggled gold weighing 60 kilos and 716 grams from the Sinamangal area

Energy Minister Shakti Bahadur Basnet has laid the foundation stone for the construction of a 29.5m high Dam of the 216 MW Upper Trishuli-1 (UT-1) run-of-the-river hydroelectric project in Trishuli River of Rasuwa District. Basnet laid the foundation stone for the project amidst a special ceremony held in Kathmandu on Tuesday. 

Nepal Water and Energy Development Company (NWEDC), a special purpose vehicle through which Korea South-East Power Co (KOEN) along with Korea Overseas Infrastructure and Urban Development Corporation (KIND), International Finance Corporation (IFC) a member of the World Bank Group and domestic investor is developing the project on build-own-operate-transfer (BOOT) model. The project development agreement of the project was signed with the government in December 2016. 

The UT-1 is the largest hydroelectric project under construction with foreign direct investment for domestic consumption. The concession period for the project is 35 years, including five years of construction period.

Addressing the ceremony, Energy Minister Basnet said that the government is fully committed to creating a favorable environment for domestic and foreign investors to develop hydropower projects. 

The President and Chief Executive Officer of KOEN Hoe-Chun Kim said the project is very important for fulfilling increasing internal power demand, especially in the dry season. 

The project’s main construction started in Jan 2022 and is estimated to be completed in December 2026. The main construction works including the excavation of the underground powerhouse, headrace tunnel, and head works are in full swing on all fronts and the overall progress rate of the project is 22 percent. Doosan Eneribility is the engineering, procurement, and construction (EPC) contractor for the Project. 

The $647.34m project is financed through 70 percent debt and 30 percent equity. The project partners will provide an equity investment of  $194.2m. The debt of $453.12m is being provided by a group of international lenders, including the International Finance Corporation (IFC), Asian Development Bank (ADB), Korean Exim Bank (K-EXIM), Korean Development Bank (KDB), Asian Infrastructure Investment Bank (AIIB), FMO (The Netherlands), the British International Investment (BII), Proparco (France), and the OPEC fund for International Development (OFID).

The UT-1 is expected to generate up to 1,533 GWh of electricity. Out of the total annual energy generated by the Project, 38.75 percent will be generated during the dry season, which is higher than most of the other run-of-the-river hydropower projects in Nepal, thus contributing vastly to managing the dry season electricity shortfall. 

The Central Investigation Bureau of Nepal Police has claimed to have recovered 302 kg gold smuggled through brake shoes from abroad.

The CIB said that it has recovered a total of 362 kg gold—60 kg gold which was recovered earlier and 302. 62 kg gold which was recovered later from the brake pads.

It has been confirmed that 363 kg gold is worth around Rs 3. 5 billion was imported illegally to Nepal.

CIB Chief Kiran Bajracharya said that the Chinese nationals, who were arrested in connection to the gold smuggling case, had smuggled the gold to Nepal by establishing five companies.

“After the confiscation of 60 kg gold imported by Ready Trade Pvt. Ltd, we have recovered 302 kg gold smuggled through brake pads,” Bajracharya said that the CIB is preparing to file a case demanding a fine of Rs 3.5 billion. Investigation is underway as the smugglers may have brought the gold through other means.”

Preliminary investigation revealed that the five foreign nationals have also taken the citizenships and passports by submitting fake details. Investigation is underway regarding the same, Bajracharya said.

A team of 42 persons of CIB is investigating the gold smuggling case.

It has been found that Nepali, Indian, Chinese and Taiwanese nationals were involved in the smuggling of gold.