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Many in Nepal protest against Chinese rail construction firm in eco-fragile zone

Nepal floods

After several people in Nepal were displaced and houses damaged following the flash floods, protests against Beijing based company China Railway Construction Corporation (CRCC) have erupted in parts of the Himalayan nation. CRCC has carried out road construction in Nepal's Sindhupalchawk district.

Also read: Indian, Chinese nationals missing in Nepal flash flood

Notably, in 2019, the World Bank had announced a nine-month debarment of CRCC and its wholly-owned subsidiaries, China Railway 23rd Bureau Group Co., Ltd. (CR23) and China Railway Construction Corporation (International) Limited (CRCC International), in connection with misconduct under the East-West Highway Corridor Improvement Project in Georgia.

China is majorly involved in construction activity to forge robust connectivity linkages between Nepal and Tibet as part of Beijing's ambitious Belt and Road Initiative (BRI). Now solely dependent on India, China is keen to connect landlocked Nepal with four Chinese sea ports – Tianjin, Shenzhen, Lianyungang, and Zhanjiang – and three dry ports – Lanzhou, Lhasa, and Xigatse. In March 2016, Kathmandu and Beijing signed a Transit and Transport Agreement (TTA) that promised to provide Nepal access for third party trade through Chinese sea and land ports, the Diplomat magazine reported.

Why Nepal’s Access to China Ports Matters

According to news agency ANI, a report carried by Nepal Aaj said that people in the Himalayan Nation not only protested against the Chinese company but also demanded payment for damages faced by them. “They blamed the company for causing serious environmental disaster causing landslides and damaging houses at the location,” ANI said.

Heavy rains last week led to floods and landslides, derailing normal life in Nepal. Many people are also missing.

The Centre for Strategic and International Studies in a study noted that “as Chinese companies push deeper into emerging markets, inadequate enforcement and poor business practices are turning the BRI into a global trail of trouble.” It pointed out that besides CRCC several other Chinese companies have also been debarred from the World Bank and other multilateral development banks for fraud and corruption, which covers everything from inflating costs to giving bribes.

Also read: With China on the backfoot in the perception war, India needs to step up its game in Africa

“Corruption allegations multiply partly because China's largest lenders are opaque. Projects are publicized after contractors are picked, and loan terms are rarely released,” it said.