If compared with the existing assistance level that Nepal is getting from China, net change in assistance that Wen´s visit brought about is Rs 5.68 billion, said a source at MoF. This includes 310.4 million yuan (Rs 4.03 billion) in grant and technical assistance and one-time special grant of US$ 20 million (Rs 1.65 billion).[break]
The visit made two important contributions. First, the development partner in the north increased the annual grant assistance to Nepal to 200 million yuan, which is a raise of exactly one-third over what Nepal was receiving presently, that is 150 million yuan.
This effectively ensured Nepal will get additional grant assistance of 150 yuan for the next three years from what it was getting so far. Apart from that, the Economic and Technical Cooperation Agreement that Prime Minister Dr Baburam Bhattarai and Wen signed has also committed additional 150 yuan during the agreed period of next three years.
"Hence, the visit effectively earned us net raise in grant assistance by 300 million yuan," said the source, explaining the composition of 750 million yuan economic and technical cooperation package that the government repeatedly cited without clarity.
The source even disclosed that the raise in annual grant amount is neither new nor unexpected. China that initially provided development assistance in Indian currency more than 30 years ago has been gradually raising the assistance volume over the years and had committed to raise the annual grant assistance to 200 million yuan when the then Prime Minister Madhav Kumar Nepal visited Beijing.
MoF records show China raised the annual grant assistance to 37 million yuan in 1988, 80 million yuan in 1995, 100 million yuan in 2005 and to 150 million yuan in 2009.
Second, Wen also pledged special grant assistance of US$ 20 million (over Rs 1.65 billion) to support the peace process. "This is one crucial and much-needed financing," said the source, adding that the support will be used particularly for financing rehabilitation of Maoist combatants.
Apart from that, China during Wen´s visit pledged financial and technical assistance of 10 million Yuan (about Rs 130 million) to bolster capacity of Nepal Police. Under this, China said it would provide equipment and other support to the Nepal Police.
Another technical assistance package of 400,000 Yuan (about Rs 5.2 million) too was signed for strengthening the Armed Police Force (APF). "This technical assistance will go for conducting study to establishment an APF college," said Deputy Prime Minister and Foreign Minister Narayan Kaji Shrestha.
Related story
52% of country's foreign aid went to province 3
