Nepal Requests China to Convert Pokhara Airport Loan into Grant, Signs Cooperation Agreements

The Government of Nepal has formally requested the Chinese government to convert the loan taken for the construction of Pokhara Regional International Airport into a grant. This request was communicated through a letter from the Ministry of Finance, which was handed over to the Chinese side on Thursday.

Dhaniram Sharma, Chief of the International Financial Aid Coordination Division under the Ministry of Finance, delivered the letter to Yang Weigun, Vice Chair of the China International Development Cooperation Agency, during a program at the Ministry of Finance.

At the event, Deputy Prime Minister and Minister of Finance Bishnu Prasad Paudel appealed to the Chinese government to consider converting the loan into a grant, citing Nepal’s current economic challenges and the strong neighborly relations between the two countries.

The program was attended by Finance Secretary Dr. Ram Prasad Ghimire, Chinese Ambassador to Nepal Chen Song, and other dignitaries. During the event, four separate letters of cooperation were signed between Nepal and China. These agreements include the construction of an 8.2 km road from Kalanki to Bashundhara, Maharajgunj along the Kathmandu Ring Road, the upgrading of the Hilsa-Simikot road section to two lanes, the construction of an Integrated Check Post (ICP) and Inland Container Depot (ICD) at the Korala transit point in Mustang, and a feasibility study for the maintenance and improvement of the Araniko Highway, along with landslide control measures.

The agreements were signed by Finance Secretary Dr. Ghimire on behalf of the Nepalese government and by Yang Weigun on behalf of the Chinese government. These developments mark a significant step forward in the ongoing infrastructure collaboration between Nepal and China.