KATHMANDU, Aug 10: At a time when the government's plan to establish a chemical fertilizer factory has not materialized even after four decades since discussions began, China has shown interest in investing in chemical fertilizer factories in Nepal.

Chinese Ambassador to Nepal Chen Song has said that China is ready to help in the establishment of a fertilizer factory under the Belt and Road Initiatives (BRI) project.

In a recent meeting with a group of editors of major media outlets at the embassy, Ambassador Chen said that the Chinese side is ready to help operate the fertilizer factory using abundant electricity and water that Nepal has at its disposal. He said that such a factory would consume a huge amount of electricity and water available in abundance domestically.

Ambassador Chen expressed belief that such an industry can be put into operation within a year if the relevant government agencies including the Investment Board Nepal give approval on time. “Our aim is to utilize Nepal’s abundant electricity and water resources to operate the fertilizer plant. Strengthening our relationship with Nepal and contributing to its development is our priority,” Ambassador Chen emphasized.

The envoy also stated that China is committed to supporting Nepal’s socio-economic progress. However, he also expressed his suspicion that "some elements" in Nepal could play a role in preventing this from happening.

This interest of China to build chemical fertilizer is seen with great interest as Nepal is importing chemical fertilizers worth around Rs 40 billion annually. Although the issue of the fertilizer factory has been discussed time and time again since four decades, this has not materialized till date.

The government has been giving subsidies of about Rs 30 billion annually for chemical fertilizers. The government allocated Rs 30 billion to subsidize chemical fertilizers in the Fiscal Year (FY) 2023/24. In the current FY 2024/25, Rs 27.95 billion has been allocated for the purpose.

In addition to China, India has also been showing its interest in investing in chemical fertilizer factories in Nepal. In fact, the state-owned Nepal Oil Corporation (NOC) even initiated discussions on the establishment of a chemical fertilizer factory saying that there is an opportunity to produce it domestically in view of the fact that farmers are unable to get fertilizer on time.

Ambassador Chen mentioned that a team of Chinese technicians is currently in Nepal conducting a feasibility study for the Nepal-China cross-border transmission line. He highlighted that developing hydropower and cross-border power trade will be vital in achieving Nepal’s goal of a “Prosperous Nepal, Happy Nepali.”

The envoy expressed confidence that Nepal and China could engage in cross-border power trade within a short-term if things go as planned.

Reaffirming China’s commitment to helping Nepal transition from Least Developed Country (LDC) status to a middle-income country by 2026, Ambassador Chen further said that the recent third meeting of the Communist Party of China (CPC) had opened China’s labor market to workers from other countries including Nepal.

 He also highlighted that a high-level US business delegation recently visited China to explore investment opportunities following the CPC’s third plenary session of the 20th Central Committee of the Communist Party of China (CPC), which was presided over by Chinese President Xi Jinping.

The meeting, which is seen as important as CPC’s meeting in 1978 that opened China to the outside world, announced over 300 reform measures including opening of China’s commodity, service, capital and labor markets for other countries to further deepen the reforms comprehensively to advance Chinese modernization.

Ambassador Chen expressed commitment to enhancing bilateral cooperation for Nepal’s development and mentioned that Nepal’s electricity could potentially be exported to the Chinese market. Additionally, Nepali students pursuing higher education in China would have access to employment opportunities, including internships.

 Emphasizing the importance of tourism infrastructure to attract Chinese tourists, Ambassador Chen assured that China is ready to transfer technology to Nepal. He reminded that the Belt and Road Initiative (BRI), launched by President Xi Jinping to enhance cooperation in different fields including infrastructures, would benefit all participating countries.

He argued that the BRI has established itself as an important platform for cooperation, collaboration, and connectivity, playing a crucial role in integrating economies, connecting markets, and encouraging investment in infrastructure. In the context of global resource scarcity, BRI is significant for implementing sustainable development goals, the envoy said. 

Under the 'Trans-Himalayan Multi-Dimensional Connectivity Network,' BRI encompasses cross-border railways, roads, ports, air transportation, and information technology, which he asserts are beneficial not only for Nepal but for everyone.

While clarifying that the BRI Implementation Plan is not mandatory to start implementing projects under the BRI and that the implementation of several projects is already underway, Ambassador Chen clarified that the BRI implementation plan has not yet been signed with Nepal due to some technical issues.  He expressed confidence that the agreement would be finalized within a few months.

“We place great importance on developing Nepal-China relations and are ready to further strengthen comprehensive cooperation between our countries, fostering everlasting friendly relations for the welfare of peoples of both countries,” Ambassador Chen assured.

 
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