Nepal-China Partnership Deepens: Four Major Projects To Boost Healthcare, Energy, And Human Capital

22nd July 2025, Kathmandu

In a significant stride forward for bilateral relations, China has formally committed to investing in four pivotal development projects in Nepal. These agreements, solidified through the signing of Memorandums of Understanding (MoUs), underscore a deepening of cooperation between the two neighboring nations, promising substantial advancements in Nepal’s critical sectors.

Nepal-China Partnership Deepens

The signing ceremony followed a high-level meeting in Kathmandu today, July 22, 2025, between Nepal’s Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, and Chen Xiaodong, Chairman of the China International Development Cooperation Agency (CIDCA). Chairman Chen Xiaodong led a Chinese delegation for discussions at the Ministry of Finance, where both sides engaged in comprehensive dialogues covering the spectrum of Nepal–China bilateral relations, ongoing and future development cooperation, and strategies to strengthen their enduring partnership.

The focus of the discussions extended beyond immediate aid to a broader vision of enhanced development collaboration, reinforcing the strategic ties that bind the two countries. The four MoUs signed are poised to bring tangible benefits across diverse areas, from healthcare infrastructure to energy connectivity and human resource empowerment.

Key Projects Under the New Agreements:

The signed MoUs signify China’s concrete commitment to Nepal’s developmental aspirations. These initiatives are strategically chosen to address some of Nepal’s pressing needs and facilitate long-term growth.

1. State-of-the-Art Bone Marrow Transplant Center

A groundbreaking agreement involves the construction of a bone marrow transplant center at the B.P. Koirala Memorial Cancer Hospital in Bharatpur, Chitwan. This vital facility, spanning an area of 1,834 square meters, will encompass the complete development of necessary infrastructure and the installation of advanced specialized medical equipment.

Currently, access to advanced blood cancer treatment, such as bone marrow transplants, is severely limited in Nepal. The establishment of this center is anticipated to be a game-changer, significantly improving the country’s capacity to treat blood cancers and provide critical care closer to home for Nepali citizens. This will reduce the need for patients to travel abroad for such specialized procedures, alleviating financial and logistical burdens. The MoU for this crucial health initiative was signed by Finance Secretary Ghanshyam Upadhyaya on behalf of Nepal and CIDCA Chairman Chen Xiaodong on behalf of China.

2. Feasibility Study for Civil Servants’ Hospital Expansion

Another key MoU targets the healthcare sector, focusing on conducting a feasibility study for the expansion of the Civil Servants’ Hospital in Nepal. This study is a crucial first step towards significantly improving healthcare access and services for government employees and the broader public who utilize the facility. Expanding this hospital will enhance its capacity, modernize its facilities, and potentially introduce new medical services, thereby strengthening Nepal’s public healthcare system as a whole.

3. Comprehensive Human Resource Development Cooperation

Recognizing the importance of human capital for national development, Nepal and China have also formalized an MoU for extensive human resource development cooperation. Under this agreement, a substantial number of 1,270 Nepali government officials will be afforded invaluable opportunities to participate in a variety of bilateral and multilateral seminars and specialized training programs hosted by various Chinese institutions.

This initiative is designed to bolster the professional capabilities, technical skills, and leadership qualities of Nepali civil servants. By providing exposure to international best practices and advanced methodologies, this program aims to foster more effective governance, enhance public service delivery, and equip the Nepali workforce with the expertise needed for future developmental challenges.

4. Rasuwa–Kerung Cross-Border Transmission Line Feasibility Study

In a move set to bolster Nepal’s energy security and regional energy trade, a critical MoU was signed to initiate a feasibility study for the construction of a cross-border transmission line between Rasuwagadhi (Nepal) and Kerung (China). This project is of immense strategic importance, as it lays the groundwork for facilitating future electricity trade between the two nations.

The agreement, signed by Hitendra Dev Shakya, Managing Director of the Nepal Electricity Authority (NEA), and CIDCA Chairman Chen Xiaodong, will assess the technical, economic, and environmental viability of establishing this international transmission connection. A successful feasibility study could pave the way for a major infrastructure project that enhances Nepal’s energy resilience and integrates it more closely into regional energy grids.

China’s Commitment to Flood Recovery in Rasuwa

Beyond these four major projects, China also reaffirmed its commitment to providing assistance for the reconstruction of physical infrastructure in Rasuwa district, which has recently been severely affected by devastating floods. During the high-level meeting, Chairman Chen Xiaodong assured Nepal of China’s unwavering support for rebuilding efforts. He further emphasized China’s intention to streamline customs processes at the Rasuwagadhi border crossing to expedite recovery and reconstruction activities, recognizing the critical role of this trade route.

Finance Minister Paudel underscored the strategic importance of the Rasuwagadhi border crossing, highlighting its dual value for both trade and revenue generation for Nepal. He expressed the urgency of reconstruction in the flood-affected region and extended heartfelt gratitude to the Chinese government for its consistent and timely support.

Elevating Bilateral Ties for Future Prosperity

Finance Minister Paudel concluded the discussions by expressing profound gratitude to the Chinese delegation for their visit, emphasizing the multifaceted and deeply rooted nature of Nepal–China relations. He stressed that such high-level engagements are instrumental in further strengthening and elevating bilateral ties to new heights.

Finance Secretary Upadhyaya echoed these sentiments, articulating that the newly signed agreements would contribute significantly to Nepal’s health sector, human capital development, and cross-border electricity trade, ultimately yielding widespread benefits for the Nepali population. He also conveyed optimism regarding continued Chinese support for Nepal’s infrastructure development in the years to come. These initiatives collectively underscore a robust and evolving partnership, poised to deliver substantial and lasting impacts across key sectors in Nepal.

Read More: Nepal China Partnersip Deepens