New Delhi, Feb 24 (NationPress) A significant Nepalese initiative, which forms part of China’s extensive Belt and Road Initiative (BRI), has been excluded from the campaign commitments of Balen Shah, the former Mayor of Kathmandu. Shah is running against former Prime Minister K.P. Sharma Oli in the latter's stronghold of Jhapa-5, as reported by local news sources.

The parliamentary elections in Nepal are set to take place on March 5, under a temporary government, established following the resignation of Oli's administration amid extensive anti-corruption protests led by Gen Z activists in September of last year.

The focus is now on the Damak Industrial Park in Jhapa, which has been renamed the Nepal-China Friendship Industrial Park, following Balen's recent announcement, according to the Kathmandu Post.

The Kathmandu Post also cited unnamed officials expressing New Delhi's apprehensions due to the project's proximity to the Nepal-India border, especially concerning the strategic Siliguri Corridor, often referred to as the "chicken's neck".

There are questions regarding why Kathmandu would allow Beijing to construct such a significant project near the border, raising concerns for a variety of reasons.

Balen Shah, who emerged as a favored candidate among the youth for the interim Prime Minister role, has opted out of the race.

This 35-year-old engineer-turned-rapper-turned-politician, representing the Rastriya Swatantra Party (RSP), is seen as a potential future Prime Minister of Nepal.

"This project is part of the Belt and Road Initiative (BRI), an ambitious multi-continent infrastructure program initiated by Chinese President Xi Jinping. In February 2021, former Nepal PM Oli laid the foundation stone of this project in the Kamal Rural Municipality of Jhapa district," the newspaper report noted.

Oli, as the head of the Communist Party of Nepal (Unified Marxist Leninist), has reportedly maintained close ties with Beijing.

While the former Prime Minister included the construction and completion of the industrial park in his 41-point commitment paper published last week, Balen Shah has chosen to leave the project out of his manifesto that was unveiled on Monday.

According to an unnamed aide, "We are aware of the project and the surrounding controversies, hence we decided to remove it from our plans."

Previous reports indicated that the Nepali Congress and the Communist Party of Nepal-Unified Marxist Leninist had differing opinions regarding Kathmandu's decision to accept loans.

Significant delays in the execution of many BRI projects have also been highlighted, with none finalized yet, raising questions about the initiative's viability.

Concerns have been voiced within Nepal regarding the financial ramifications of BRI projects, especially in light of Sri Lanka's financial troubles linked to similar Chinese investments.

"Sources privy to negotiations revealed that China had originally proposed various funding options, from blended financing models to commercial loans. The Nepali Congress insisted it wouldn't take commercial loans under BRI, yet the final agreement adopted the term 'aid financing modalities' instead of the 'grant financing modalities' preferred by the Nepali Congress Party," a report from the think tank Centre for Social Innovation and Foreign Policy (CESIF) stated.

The Damak Industrial Park aims to facilitate access to the Indian market via the Kakarvitta and Birgunj ports, emphasizing its significance, especially following the visit of China’s Ambassador to Nepal, Zhang Maoming.

According to the CESIF document, a major challenge for Kathmandu was Beijing's request for extensive tax exemptions, which Nepal's Finance Ministry resisted, not just during the construction phase but for several years post-completion of the project.

Despite China's demands becoming a contentious issue, a meeting of the Investment Board of Nepal, chaired by former Prime Minister Oli, opted to expedite the project.

Furthermore, it was reported that India had communicated that the project was a "red line" and advised both the Nepali Congress and the Communist Party of Nepal-Unified Marxist Leninist against proceeding with it.