KATHMANDU: Foreign Secretary Shanker Das Bairagi and Chinese Ambassador to Nepal Yu Hong signed the memorandum of understanding  on the 'One Belt, One Road', a development initiative introduced by China, amidst a programme at the Ministry of Foreign Affairs in Kathmandu on Friday.

Deputy Prime Minister and Minister for Finance Krishna Bahadur Mahara and Foreign Minister Prakash Sharan Mahat were also present on the occasion.

Talking to media persons after the signing ceremony, Foreign Minister  Mahat said the MoU was itself a great step in the relationship between the two countries.

"This agreement will bring Nepal and China closer through road connectivity and bring home the Chinese investment..."

Addressing the function, Minister Mahat said the agreement was important for Nepal in terms of expansion of road connectivity, construction of railway and an increment in Chinese investment.

"Nepal is a landlocked country and it is still a least-developed one," he said, expressing his hope that it would see investment here by its valuable neighbour China which would support in the economic development.

With the signing of the MoU, a new chapter has begun in the area of foreign investment and trade promotion, he added, Nepal would reap benefits from the Chinese project which would expand to Europe and Africa, and Nepal felt that a new dimension had been added to the sector of economic development with the signing of the MoU.

"Nepal needs the maximum investment and we want Chinese investment channeled in Nepal through this new project," he said.

Recalling that many rounds of discussions and interactions had been held at different levels between the two countries prior to signing the MoU, the Foreign Minister extended special thanks to both the Nepali and Chinese sides extending support for its realisation, according to Yek Raj Pathak, Minister Mahat's press coordinator.

On the occasion, Foreign Secretary Bairagi said Nepal would be benefited from this important project initiated by China and that this should be taken as a significant achievement of Nepal's development endeavour.

China's ambassador to Nepal Yu Hong expressed that this project would contribute to enhancement of China-Nepal cooperation as well as to the economic development of the South Asia region itself.