The Absence of Grants in the BRI Agreement: What’s Next? (Analysis)

The full text of the Nepal-China Belt and Road Initiative (BRI) agreement has been made public, raising many questions. The agreement does not mention grants, which has created debate about what this means for Nepal’s involvement in the BRI.

While China may provide grants, concessional loans, or investment-based loans, since the agreement does not specifically mention grants.
The release of the agreement comes after U.S. Assistant Secretary of State Donald Lu’s visit. The lack of grants has caused concerns, especially among political leaders from the Nepali Congress, who wonder if grants or other aid will be included later. 

The agreement also allows Chinese banks to open branches in Nepal and facilitates Nepali investments in China. It also outlines how ongoing projects will continue and how projects can be canceled with a three-month notice.
However, it has received mixed reactions from Nepal’s political parties.The main question now is how BRI projects will be carried out with differing views within Nepal’s political landscape.