Book ‘China's Emergence in Nepal's Infrastructure: Status, Issues and Challenges’ launched

Centre for Social Inclusion and Federalism (CESIF) organized a national seminar to launch its publication – China’s Emergence in Nepal’s Infrastructure: Status, Issues and Challenges and shared key findings of the report for wider civic engagement and discussion.

The book, authored by noted author Amish Raj Mulmi, senior journalist, Anil Giri, co-founder of The Araniko Project Raunab Singh Khatri, CESIF’s Research and Program Coordinator Arpan Gelal and CESIF’s researcher Milan Acharya was launched at the Square Hotel today, reads a statement issued by the CESIF.

The book launch was followed by the discussion on the theme, ‘China’s Emergence in Nepal’s Infrastructure: Status, Issues and Challenges.’

The seminar brought together distinguished panelists—former Economic Development advisor to the Prime Minister of Nepal and (Ret.) Secretary of the Government of Nepal Lal Shanker Ghimire, former Urban Secretary of the Government of Nepal Deependra Nath Sharma, Director of the Center for Governance and Academic Affairs at IIDS Dr Sucheta Pyakuryal, former senior External Affairs Officer at the World Bank, Rajib Upadhya.

The panel was moderated by Research Advisor at CESIF Ajaya Bhadra Khanal.

The discussion brought into account the nexus of corruption that Chinese infrastructure projects had built, their inclination towards party-to-party relations, especially the left political forces, and the need for Nepal’s political and bureaucratic front to work together upon its negotiation techniques, the statement reads.

Vijay Kant Karna, Executive Chair at CESIF, began the seminar by extending his welcome remarks.

“Realizing the lack of comprehensive research on China's involvement in Nepal's infrastructure sector, CESIF conducted research on the said topic, the report of which we are launching today. The report is expected to provide insights into the patterns of Chinese engagement in Nepal's infrastructure. The report also discusses the nexus between the local agents of Chinese contractors and Nepali decision makers,” said Karna.

Author Amish Raj Mulmi presented key findings and analysis of the book.

Mulmi discussed the mechanisms of the Chinese infrastructure engagement in Nepal, and then provided a succinct comparison of the infrastructural investment by China, India and Japan in Nepal, in which he commended Japan’s debt relief practices.

Lal Shanker Ghimire began the discussion by talking about how all aid comes with strings attached.

He reflected that infrastructural funding is no different and must be viewed from that same lens.

Ghimire further said that a lack of proper negotiation has led to some of the unfair deals. This lack of negotiation stems from inferiority complex and lower bargaining capacity of Nepali bureaucrats.

Similarly, Dr Sucheta Pyakuryal mentioned that Nepal is not in a scary position given the status of economic indicators.

However, the political dimension is a thing to reflect upon.

Nepal, as a country, is weak, and thus, commercial projects tend to make a weak state weaker. Therefore, we need to look upon the knots and bolts of our government while dealing with the funded infrastructure projects,’ said Dr Pyakuryal, the statement further reads.

Likewise, Dr Rajib Upadyay provided his opinion on how resources are finite now.

‘The era of cheap money is now over. In particular because of three reasons: firstly, the West is heading towards recession. Secondly, rising global tensions has brought geopolitics into the economic discourse. Thirdly, the defense budget is increasing amongst NATO countries,’ he reflected.

Deependra Nath Sharma, reflected upon the lack of a definite institution to oversee infrastructural governance.

He said that the national planning commission needs to involve itself more. Especially, when projects do not complete in the intended period, there is blame game, and cost overrun, among others.

Sharma opined, ‘There is also a Public Procurement Monitoring office, but is barely monitoring anything. It provides suggestions on dispute, but doesn’t monitor, per se.’ Thus, there is clearly an institutional gap.

Moderator Ajaya Bhadra Khanal summarized the discussion by reflecting that there exists a plethora of aspects of infrastructural development and that Nepal needs to prioritize its national interest while negotiating for infrastructural development deals.

The seminar ended with vibrant participation from audiences for the question-and-answer segment. The event hosted noted diplomats, journalists, former bureaucrats, academicians, former military officials, and researchers.

Centre for Social Inclusion and Federalism (CESIF) Nepal 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.