The Chinese government had announced the grant amount for spending on infrastructure development in Nepal. Officials said Nepal is at risk of losing the additional grant support as it has failed to submit specific project proposals to China for spending the amount.
China had provided 1.3 million liters of fuels to Nepal as it was facing an acute fuel shortage due to the Indian blockade.
"The government has failed to select the projects for spending the Rs 12.8 billion to be provided by China under a framework agreement," said Baikuntha Aryal, chief of the International Financial Support Division under the Finance Ministry.
"If the government fails to select the projects soon, the cost of the fuel will be deducted from the same grant amount."
Aryal said this situation wouldn't have arised had the government selected the projects on which the grant amount would be spent and submitted the details to the Chinese side.
"We couldn't benefit from the additional support provided by China at a time of a crisis in Nepal," he said.
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