Prime Minister KP Sharma Oli has described the recently signed "BRI Cooperation Framework" with China as a significant achievement.  

Speaking to reporters after landing at Tribhuvan International Airport (TIA) on Thursday, December 5, Oli emphasized that the framework is unrelated to loans. “We will discuss each project under the BRI in detail to finalize separate agreements on their implementation and modality,” he said.  

PM Oli and his delegation returned to Kathmandu on Thursday afternoon after completing a four-day official visit to China.  

The visit, regarded by many as "tradition-breaking," marked a shift from the usual practice of Nepali prime ministers visiting India first after assuming office. Oli, who took office in July, has yet to receive an invitation from Delhi.  

Read: Nepal Agrees to 'BRI Cooperation Framework' After China Rejects Full Grants

Key Focus on the BRI Cooperation Framework  

The visit drew significant attention due to discussions on Belt and Road Initiative (BRI)-related projects. On Wednesday, December 4, Nepal and China signed the “BRI Cooperation Framework,” following months of debate over whether financing for these projects would involve grants or loans.  

Experts suggest that China's refusal to provide full grants reflects a strategic decision to avoid setting a precedent for other BRI participants to demand similar concessions. The framework introduces the term “aid assistance financing,” allowing Nepal to request loans or grants for specific projects, with the final funding modality left to China's discretion.  

Agreements Signed During the Visit  

Prime Minister Oli met with Chinese President Xi Jinping, held talks with Premier Li Qiang, and engaged with Zhao Leji, Chairman of the Standing Committee of the National People’s Congress. The two sides discussed strengthening bilateral relations and addressing international and regional issues of mutual interest.  

During comprehensive bilateral talks, Oli and Premier Li oversaw the signing of several agreements, including: 
- Agreement on Economic and Technical Cooperation  
- Letter of Exchange for the Tokha-Chhahare Tunnel  
- Protocol on Buffalo Meat Exports  
- Memorandums of Understanding (MoUs) on Trade Promotion, Development Plans (2024–2029), and Volunteer Chinese Language Teachers  
- Letter of Exchange on Cash Assistance  
- Handover Certificate for the Reconstruction of the Nine-Storey Basantapur Tower  

Challenges and Strategic Implications  

The financing modality for BRI projects sparked debate within Nepal. The ruling coalition, comprising the Nepali Congress (NC) and the CPN-UML, appeared divided, with the NC opposing loan-based agreements. Oli, however, reiterated that Nepal must welcome all forms of investment aligned with national interests.  

Dr. Khadga KC, professor at the Department of International Relations and Diplomacy at the Tribhuvan University, described the agreement as a positive step with long-term strategic importance. While grants remain preferable, Nepal’s chances of receiving them will decline once it graduates from least-developed country status in November 2026, he said.  

“For over 70 years, Nepal has received loans from Western OECD countries, development partners, and institutions such as the ADB, World Bank, and IMF,” KC noted. “We have received assistance and loans from India, China and other countries. Under the BRI, we should prioritize soft loans for major infrastructure projects.”  

“The letter and spirit of the agreement is positive and carries a strategic importance for the country in the long-run,” said KC, also the rector at Tribhuvan University. “China has always respected the principle of sovereign equality, and the latest agreement with Nepal is its continuation.” 

Nepal has identified ten projects under the BRI Cooperation Framework, focusing on road infrastructure, urban development, industry, and trade. 

Diplomatic and Economic Engagement  

Oli’s visit also featured symbolic and substantive diplomatic engagements. He was welcomed at Beijing’s Great Hall of the People with a guard of honor by the Chinese People’s Liberation Army. At Peking University, he delivered a keynote address titled “Comprehensive Democracy: A Journey Towards ‘Prosperous Nepal, Happy Nepali’”.  

At the Nepal-China Business Summit, Oli highlighted Nepal’s improved investment climate and encouraged Chinese investors to explore opportunities across multiple sectors.  

Oli headed to Beijing on a special chartered plane of Himalaya Airlines on Monday, December 2. He was accompanied by his wife Radhika Shakya, Foreign Minister Arju Rana Deuba, his chief advisors Bishnu Rimal and Yubaraj Khatiwada, several lawmakers, the chief secretary, senior government officials, diplomats and private sector representatives.