Chinese Ambassador to Nepal Zhang Maoming and Sunil Lamsal, Nepal’s Minister for Infrastructure Development, met on September 25, 2026, for an in-depth exchange on China-Nepal relations, post-disaster reconstruction, and connectivity. Both sides agreed to strengthen communication and coordination, deepen cooperation on post-disaster reconstruction, enhance infrastructure connectivity, and help affected families resume normal life.
The meeting highlighted a shared commitment to further develop China-Nepal relations, particularly in the wake of recent natural disasters that have severely impacted Nepal’s infrastructure.
Focus on post-disaster reconstruction
The discussions between Ambassador Zhang and Minister Lamsal emphasized the critical need for post-disaster reconstruction efforts. Nepal’s Ministry of Physical Infrastructure and Transport on October 7, 2026, requested approximately Rs 64 billion for the reconstruction of infrastructure damaged by floods and landslides in August and September. The Nepal government also stated on October 5, 2026, that it needs to seriously review its infrastructure development model following this year’s devastating floods and landslides.
Minister Lamsal, who assumed office on May 13, 2026, as the head of the Infrastructure Development Ministry, has been vocal about the need for a ‘paradigm shift’ in infrastructure construction and urban development policies, considering the risks posed by climate change. He stated on October 6, 2026, that the reconstruction process for all damaged bridges would begin immediately, without waiting four years. Additionally, the procurement process for reconstructing damaged drinking water projects is set to start before Dashain.
The World Bank projected on October 6, 2026, that Nepal’s economic growth rate would decline to 3.7 percent in the 2026-27 fiscal year, primarily due to the August 26 Rasuwa flood.
Enhancing connectivity and bilateral ties
Connectivity was another key agenda item during the meeting. The August 26 flood, caused by a rapid slope failure near Langtang National Park, destroyed communities, infrastructure, and critical transport links in northern Nepal, including the Kerung-Rasuwagadhi border crossing. This crossing was the only all-weather trade route between Nepal and China.
In response to these challenges, China proposed developing Korala as an international border crossing, sending the proposal to Nepal on October 1, 2026. Chinese and Nepali teams were expected to study the infrastructure and other facilities at the Korala border point on October 4, 2026.
Nepal and China signed a Memorandum of Understanding for cooperation under the Belt and Road Initiative (BRI) on May 12, 2017, setting a precedent for collaborative infrastructure projects.
Government initiatives and future plans
The Nepal government has decided to recommend a budget of Rs 559.17 billion for post-disaster reconstruction and rehabilitation. Minister Lamsal has indicated that the government is working to amend existing laws to create a favorable environment for infrastructure development and investment. The government also plans to cancel contracts for long-incomplete or neglected development projects.
Efforts are underway to relocate disaster-affected families to safe areas, with land identification and coordination with local authorities for house construction for the affected.
Unanswered questions
Specific infrastructure projects discussed during the meeting between Ambassador Zhang and Minister Lamsal remain unclear. The exact nature of China’s expected assistance for post-disaster reconstruction and the specific steps both sides will take to further develop China-Nepal relations have not been detailed. Additionally, it is not yet clear when and how the Rs 64 billion budget requested by Nepal’s Ministry of Physical Infrastructure and Transport will be allocated, nor has the Nepal government’s formal response to China’s proposal to develop Korala as an international border crossing been made public.
