Nepal urges China to convert Pokhara airport loan into grant

KATHMANDU: The government has urged the Chinese government to convert the loan taken for the construction of Pokhara Regional International Airport into a grant.

The Ministry of Finance (MoF) sent a communiqué to the Chinese authorities with this request.

Dhani Ram Sharma, Chief of International Economic Cooperation Coordination Division under the MoF, handed over the letter to Yang Weigun, Vice Chair of the China International Development Cooperation Agency, at a programme held at the ministry in Singha Durbar, Kathmandu, on Thursday.

On this occasion, Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel requested the conversion of the loan into a grant, considering Nepal's economic condition and the country's good neighbourly relations with China.

Finance Secretary Ram Prasad Ghimire, Chinese Ambassador to Nepal Chen Song, and other dignitaries were present at the event.

During the programme, four separate letters of cooperation were signed concerning the construction of an 8.2km road from Kalanki to Basundhara, Maharajgunj of Kathmandu Ring Road, the upgrading of the Hilsa-Simikot road section to two lanes, the construction of an ICP and ICD at the Korala transit point in Mustang, and a feasibility study for the maintenance and improvement of the Araniko Highway and landslide control works.

The agreement was signed by Finance Secretary Ghimire on behalf of the government and by Yang Weigun, Vice Chair of the China International Development Cooperation Agency, on behalf of China.

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