China Shows 'Interest' in Building Infrastructure at Korala Border Point

China has expressed interest in constructing physical infrastructure at the Korala border point along Nepal’s northern frontier, although no formal agreement has yet been reached, government officials said.

Customs officials said informal discussions indicate that China is willing to build all required infrastructure at Korala, but Nepal would need to formally present a proposal for the process to move forward.

Director General of the Department of Customs, Shyam Prasad Bhandari, said China has shown readiness to construct facilities on the Nepali side of the border as well. Korala came into use after floods and landslides disrupted operations at the Tatopani and Rasuwagadhi border points during the last monsoon season.

“Even when we proposed building the infrastructure ourselves, the Chinese side expressed interest in constructing similar facilities on the Nepali side,” Bhandari said. “As a result, we have returned the budget allocated for infrastructure development at Korala. However, discussions are ongoing and no agreement has been signed.”

According to Bhandari, Chinese officials have informally indicated that with adequate infrastructure, goods could be transported more easily through Korala and other border points such as Olangchungola. While international norms favor limiting trade through a few designated border points, Nepal’s landlocked geography necessitates keeping multiple crossings operational, he said, adding that bilateral discussions on the issue are continuing.

A feasibility study on building infrastructure at Korala has already been completed. The Nepal Intermodal Transport Development Board (NITDB) had earlier conducted a study on the proposed facilities.

NITDB Executive Director Ashish Gajurel said the study estimates the cost of infrastructure development at around Rs 3 billion. The proposed facilities include a compound wall, entry gate, terminal building, two warehouses, and parking space for three categories of vehicles.

“After our feasibility study, the Chinese side has also been conducting its own assessment,” Gajurel said. “China appears interested in construction, but there is no formal construction agreement yet.”

The study concluded that the infrastructure should be built close to the border. Gajurel said Korala proved crucial when Tatopani and Rasuwagadhi were closed, and delaying infrastructure development would be imprudent. He added that Nepal needs to demonstrate interest if construction is to proceed through bilateral agreement.

Traders, however, say the Korala border point is likely to remain a contingency route even with improved infrastructure due to high transportation costs.

Ranjan Shrestha of PNP Enterprises, which imports goods from China, said transporting goods from Korala to Kathmandu involves a significantly longer distance, raising costs. “Infrastructure development should not be delayed, but traders will find it difficult to use this route regularly,” he said.

According to the Department of Customs, a range of goods—including electric vehicles imported ahead of the Dashain festival—entered Nepal through Korala this year after landslides blocked Rasuwagadhi and Tatopani.

The Mustang Customs Office at Korala collected Rs 5.6 billion in revenue in the first five months of the current fiscal year 2025/26, the department said.

Bhandari said more than 2,000 vehicles have entered Nepal through Korala so far this year, including 2,174 electric four-wheelers. Nepal also exported goods worth Rs 166.2 million through 197 containers via the border point during the period.