Nepal,China to enhance economic cooperation

Nepal and China have agreed to enhance bilateral economic cooperation,including in development of hydropower sector in this country,with Beijing pledging to increase its annual financial assistance to over Rs one billion from Rs 684 million.

Nepal and China have agreed to enhance bilateral economic cooperation,including in development of hydropower sector in this country,with Beijing pledging to increase its annual financial assistance to over Rs one billion from Rs 684 million.

The Memorandum of Understanding (MoU) in this regard was signed between the two countries as part of Prime Minister Madhav Kumar Nepals ongoing six-day visit to China.

China also agreed to increase its investment in the 750- MW West Seti Hydroelectricity project in western Nepal.

China National Machinery and Equipment Import and Export Corporation (CMIEC) and West Seti Hydro Ltd of Nepal signed a separate agreement to this effect.

Under the agreement,CMIEC will invest in 51 per cent share capital in West Seti project,according to officials.

China also agreed to increase its annual financial aid from 100 million Yuan (Rs 684 million) to 150 million Yuan,(Rs 1.03 billion),the Foreign Ministry sources here said.

During talks between Prime Minister Nepal and his Chinese counterpart Wen Jiabao in Beijings Great Hall of the People yesterday,China agreed to provide assistance to Nepal mainly in four areas — infrastructure development,hydropower,tourism and agriculture,officials said.

Besides,the two sides agreed to promote youth exchanges.