As per an understanding between Prime Minister KP Oli and Nepali Congress President Sher Bahadur Deuba on Tuesday night, a four-member task force of the Nepali Congress and CPN-UML has started reviewing the implementation plan of the Belt and Road Initiative (BRI) proposed by Beijing in early 2020.

The plan has become a major bone of contention between the two ruling parties ahead of Prime Minister Oli’s planned visit to China.

Prime Minister Oli is scheduled to go to China in the first week of December even as an official announcement has yet to be made. Accordingly, the government has intensified preparations.

In the taskforce, the Congress is represented by General Secretary Gagan Thapa and advocate Semanta Dahal, while representing the UML are the prime minister’s two aides—Bishnu Rimal and Yubaraj Khatiwada, Oli’s political and economic advisor, respectively. The task force will undertake a comprehensive review of the BRI implementation plan proposed by China.

According to ministers familiar with the matter, during Tuesday’s meeting, Congress President Sher Bahadur Deuba objected when Oli expressed his desire to sign a BRI-related deal BRI during his China visit. Deuba reportedly reiterated Congress’ official position that Nepal should not take high-interest loans to fund BRI projects.

Besides Deuba, senior Congress leaders including Vice President Purna Bahadur Khadka, Home Minister Ramesh Lekhak, Foreign Minister Arzu Rana Deuba and General Secretary Thapa were present at the meeting.

According to leaders present at the meeting, Oli told Deuba and Congress leaders that he has made up his mind to sign the BRI implementation plan and wants to sign some projects under the BRI funding modality.

“But Deuba objected. He reminded Oli of the official decision of Nepali Congress that the party is against high-interest loans and favours grants to fund projects. Deuba also raised concerns over several components of the BRI implementation plan and insisted that the plan focus on cooperation in infrastructure and development, and avoid contentious areas,” a Congress leader told the Post.

Deuba has also made several changes to the proposed draft sent by the Chinese side and handed over the revised copy to Prime Minister Oli for his consideration, said the Congress leader.

The new task force will address Congress’ concerns and come up with an alternative draft ahead of Oli’s departure for China.

The task force is mandated to revise the Chinese-proposed draft implementation plan prioritising development of infrastructure projects, according to multiple Congress and UML leaders. According to them, both Oli and Deuba are on the same page on the BRI concept, but the Congress has been insisting on grants to fund BRI projects.

“The task force is mandated to come up with a new draft by addressing the concerns raised by the Congress, some external forces and even the bureaucracy. The government needs to take external forces like India and the US into confidence and needs to maintain a balance with India. Taking note of all these concerns, the task force will revise the draft of the BRI implementation plan. The Nepal government has already communicated to the Chinese side that a revised draft will be shared, and they seem to have agreed,” said a Congress party leader. A second UML leader confirmed the Congress leader’s take.

The leaders said Nepali bureaucrats have also raised concerns over the projects’ funding modality.

“We should reject new and untested funding modalities,” a secretary at the prime minister’s office said, while stating the reservation of different ministries. “Proposals like a blended financing model and similar other models will be rejected.”

Home Minister Lekhak also reiterated his party’s favour of grants. A meeting of the Congress on July 14, just a day ahead of Prime Minister Oli’s swearing-in, had decided to prioritise grants over loans for implementing the BRI projects.

“The Congress and the UML have different views on receiving economic support under the BRI framework, but we are working to come to an understanding. The UML also has not insisted on loans, so we are discussing how to move ahead and will come up with a common position before the prime minister’s visit,” said Lekhak.

The two-party taskforce formally began its work on Thursday.

“Once the taskforce completes its revision of the BRI implementation plan, we will forward the text to the Chinese side to get their nod,” a minister told the Post.

The government has started selecting projects to be developed under the BRI framework and with Chinese economic support. According to the Ministry of Foreign Affairs, it has received a list of over six dozen projects and programmes from different ministries and now the process of shortlisting is underway.

“The shortlisting is almost over,” a joint secretary at the foreign ministry said.

The foreign ministry’s final list includes signing of the implementation plan of the BRI; letter of exchange of Tokha-Chhahare Tunnel Project between the China International Development Cooperation Agency (CIDCA) and the Ministry of Finance; agreement between the Ministry of Industry, Commerce, and Supplies of Nepal and the General Administration of the Nepal-China Border Port Management Cooperation Committee; memorandum of understanding on Trade Promotion Cooperation between China’s Ministry of Commerce and Nepal’s Ministry of Industry, Commerce and Supplies; and signing of a protocol between China’s General Administration of Customs and the Ministry of Agriculture and Livestock Development on inspection, quarantine and sanitary conditions of the thermally-processed buffalo meat products to be exported to China.

After delays in finalising the agenda and itinerary of the prime minister’s visit, Foreign Minister Deuba, who was earlier planning to visit Japan for a medical follow-up, has cancelled the trip and is heading for Beijing on November 28.

As the prime minister is going to Beijing on December 2, Foreign Minister Rana is flying to Beijing on November 28 and will meet her counterpart, Wang Yi, on November 29 for delegation level talks to finalise the prime minister’s itinerary.