Kathmandu: Nepal and China have agreed to enhance bilateral economic cooperation, including in development of hydropower sector in this country, with Beijing pledging to increase its annual financial assistance to over Rs 1 billion from Rs 684 million.
The Memorandum of Understanding (MoU) in this regard was signed between the two countries as part of Prime Minister Madhav Kumar Nepal`s ongoing six-day visit to China.
China also agreed to increase its investment in the 750-MW West Seti Hydroelectricity project in western Nepal. China National Machinery and Equipment Import and Export Corporation (CMIEC) and West Seti Hydro Ltd of Nepal signed a separate agreement to this effect.
Under the agreement, CMIEC will invest in 51 percent share capital in West Seti project, according to officials.
China also agreed to increase its annual financial aid from CNY 100 million (Rs 684 million) to CNY 150 million (Rs 1.03 billion), the Foreign Ministry sources here said.
During talks between Prime Minister Nepal and his Chinese counterpart Wen Jiabao in Beijing`s Great Hall of the People yesterday, China agreed to provide assistance to Nepal mainly in four areas -- infrastructure development, hydropower, tourism and agriculture, officials said.
Besides, the two sides agreed to promote youth exchanges. The Nepalese Prime Minister also voiced support to `one China` policy and said his country would not allow any activities directed against China from its soil.
The two leaders also discussed ways to curb criminal activities along Nepal-China border.
Premier Wen called Nepal a very important friend of China and assured full cooperation in its development endeavours.
Chinese President Hu Jintao also extended invitation to his Nepalese counterpart Ram Baran Yadav to visit China.
PTI
