Nepal, China sign key deals on energy, healthcare, civil service training

Nepal and China on July 22 signed several agreements to lay the foundation for new infrastructure and institutional partnerships, including a much-anticipated cross-border power transmission line and large-scale healthcare upgrades.

The agreements were concluded following a high-level meeting between Deputy Prime Minister and Finance Minister Bishnu Paudel and Chen Xiaodong, Chairman of the China International Development Cooperation Agency (CIDCA), who led a Chinese delegation on an official visit to Kathmandu from July 20 to 22.

A major highlight among the documents is the signing of minutes between Nepal Electricity Authority’s Executive Director Hitendra Dev Shakya and CIDCA Chairman Xiaodong on feasibility study for the Rasuwagadhi–Kerung cross-border transmission line. This signing paves the way for advancing the works relating to the study, reads the press release issued by the Ministry of Finance.

China also committed to strengthening Nepal’s healthcare system through two major initiatives, reads the release. A Letter of Exchange was signed for the construction of a bone marrow transplant centre at the BP Koirala Memorial Cancer Hospital in Bharatpur. The 1,834-square-metre facility will include essential medical equipment and is expected to fill a critical gap in advanced cancer treatment within the country.

Another letter of exchange covers a feasibility study for the expansion of the Civil Service Hospital in Kathmandu, which would upgrade existing services and help accommodate rising patient loads. Finance Secretary Ghanshyam Upadhyay signed the health-related agreements with Chairman Xiaodong.

On the institutional front, a Memorandum of Understanding (MoU) was signed to support human resource development for Nepal’s civil service. Under the MoU, 1,270 Nepali officials will be eligible to participate in bilateral and multilateral training programs hosted by Chinese institutions.

During the bilateral talks, Minister Paudel called on the Chinese side to accelerate implementation of long-discussed infrastructure projects, which include the following:

• Construction of Tokha–Chhahare tunnel and upgradation of the Kathmandu-Rasuwagadhi highway
• Expansion of the second phase of Kathmandu Ring Road
• Construction of integrated check post at Rasuwa border point
• Construction of the Kimathanka–Khandbari road 
• Infrastructure support for Madan Bhandari University of Science and Technology 
• Development support for Nepal-China Friendship Industrial Park in Damak, Jhapa, and the Panchkhal Special Economic Zone in Kavre

Minister Paudel also requested urgent support for the reconstruction of the friendship bridge at the Rasuwagadhi border point, which was swept away in a flash flood earlier this month.

According to the press release, CIDCA Chairman Xiaodong assured that China would continue to support Nepal’s national development goals, adding that Beijing gives high importance to Nepal’s economic and social priorities. He reaffirmed that Chinese cooperation would be strengthened further across critical sectors.

The Ministry expressed confidence that these new initiatives—particularly in energy and healthcare—would make meaningful contributions to Nepal’s public service delivery and regional cooperation.