KATHMANDU, JULY 28
The Centre For Social Inclusion and Federalism has organised a national seminar to launch its publication, 'China's Emergence in Nepal's Infrastructure: Status, Issues and Challenges' and shared the key findings of the report with wider civic engagement and discussion in the valley.
The CESIF has extensively researched and documented trends and patterns of China's engagement in Nepal's infrastructure. The research report analyses various avenues of China's engagement in Nepal, particularly the malpractices in the procurement process and the nexus of corruption between Chinese enterprises and domestic actors.
The publication covers a comparative analysis of tactics used by China for its engagement in Nepal compared with other countries that are historically engaged in Nepal's infrastructure sector. The report also centres around the comparison of China's procurement practices across selected South Asian countries and Nepal.
"In the later period, Chinese involvement has increased in critical infrastructure in Nepal, especially in road construction, hydropower, information technology and aviation, implemented through Chinese state-owned enterprises and contractors," reads the report.
It has stated that while the increasing Chinese engagement is perceived as an opportunity to realise Nepal's development needs, the malpractices in infrastructure projects involving Chinese contractors and their collusion with domestic actors have raised concerns about infrastructure governance and the violation of international integrity norms.
"Overseas infrastructural engagement has become an important component of China's foreign policy, Chinese private and state-owned enterprises have increased their foothold in the global infrastructure landscape in a tremendous manner, becoming the world's largest contractors for infrastructure projects across the world," said Executive Chairperson of CESIF, Vijay Kanta Karn.
According to him, China's inherent motive to encourage its companies to invest abroad is driven by its ambition to expand the international market for its domestic firms as well as to realise larger strategic aims of expanding its economic and political influence.
"Nepal became a signatory member of BRI, China's flagship foreign policy programme in 2017. Although none of the projects under BRI has taken off in the country, Nepal has witnessed an increased presence of Chinese companies and statebacked enterprises in the infrastructure sector," he said. "Manipulation of the procurement process in critical infrastructure has allowed Chinese companies to advance their business interests in the country, while also allowing the Chinese state to expand its influence within Nepal's polity," he added.
He further said, "Although the nexus between the local agents of Chinese contractors and Nepali decision-makers have occasionally been reported in the Nepali media, there is a lack of comprehensive research and analysis regarding infrastructure governance and Nepal's engagement with Chinese companies and contractors. There is also scarce information regarding the extent of China's engagement in Nepali infrastructure."
The seminar was followed by a moderated panel discussion among distinguished experts on the theme, 'Role of China in Nepal's Infrastructure.' The seminar discussed the opportunities and challenges associated with Chinese engagement in the infrastructure sector. It also identified the policy options to enhance transparency, accountability and integrity in internationally procured infrastructure projects.
A version of this article appears in the print on July 29, 2023, of The Himalayan Times.
