The more than fivefold increase in Chinese assistance to Nepal is for real.

An agreement to that effect was signed by the two sides, Tuesday March 17, 2015 in Kathmandu.

The northern neighbour, aka big boy, will thus provide with USD 130 Million for the socio-economic development of Nepal.

From USD 24 Million to USD 130 Million annual support, the Chinese support has increased by 433% annually.

On his December, 2014 visit to Kathmandu, Foreign Minister Wang Yi had declared that his country was all set to increase support to Nepal by five times. The Indian media then had claimed that by increasing its support to Nepal, China is competing with India.

However, addressing a dinner hosted by the Chinese Embassy in Kathmandu during his last visit to Kathmandu at Hotel Yak and Yesti, Minister Wang had made it clear that China means no competition with India in Nepal.

Minister Wang then disappeared from the Hotel leaving the invited Nepali guests high and dry who had been waiting for a handshake with the visiting Chinese foreign Minister. The invited Nepali leaders, including some former Prime Ministers, took it as an insult a’la Bejing style. 

The financial assistance to Nepal has come while the two countries are celebrating 60 years of establishment of diplomatic ties.

The agreement was signed by Nepal’s finance secretary Suman Sharma and Chinese Ambassador to Nepal Wu Chuntai in the presence of Nepal’s finance minister Dr. Ram Saran Mahat.

The amount will be used on mutually agreed projects, finance ministry sources revealed to the media and adds, “aiming to support economic development of Nepal”.

Speaking at the signing ceremony, secretary Sharma while thanking the northern neighbour hailed all-weather friendship between the two countries. He said, “While we thank China’s all weather friendship we would specially thank people of the Peoples’ Republic of China for the grant assistance and seek continuous support in our development endeavours.”

Said Sharma, “This is the largest amount of support extended by the Chinese government which reflects existing closest, friendly and cordial ties between the two countries”.

Chinese Ambassador Wu on the occasion hoped that Nepal attains political stability sooner than later and that it takes on the course of infrastructural development to achieve prosperity.

@telegraph