Nepal-China Industrial Friendship Park: A Catalyst for Economic Transformation

The Nepal-China Industrial Friendship Park, which has been stagnant since its foundation stone was laid by former Prime Minister KP Sharma Oli on February 28, 2021, is now gaining momentum under the Belt and Road Initiative (BRI) framework. The ambitious project, located in Jhapa, promises to become a milestone in Nepal's industrial and economic landscape.

Key Features and Development Plan

The park will span 550 hectares across Damak Municipality, Kamal Rural Municipality, and Gauradaha Municipality. It will be developed in six phases by China’s Lhasa Economic and Technology Development Zone Jing Ping Joint Creation Construction Project Development Company. The first phase, requiring an investment of up to NPR 90 billion, focuses on road construction and is expected to be completed in two years.

The Nepal government has already invested over NPR 1.29 billion to acquire 1,300 bighas of land, with plans to extend this to 2,100 bighas. Compensation payments to landowners are nearing completion, signaling progress in land acquisition and preparation.

Economic and Social Impact

The park is projected to generate 45,000 direct jobs and 160,000 total employment opportunities, making it a significant driver of economic growth in the region. It will host industries in agriculture, electronics, information technology, garments, and manufacturing, with multinational companies also expected to establish operations.

Local leaders and residents are optimistic about the project’s impact. Deputy Mayor Regina Bhattarai of Damak Municipality highlighted its potential to uplift local living standards and connect Nepali products to global markets. Padam Sedhai, a resident of Kamal Rural Municipality, expressed pride in contributing land to the project, viewing it as a pathway to economic prosperity.

Interpretation and Challenges

The industrial park is one of the largest projects in Nepal by investment and scale, offering a transformative opportunity for the local and national economy. By creating jobs and fostering industrial growth, the park can significantly reduce unemployment and attract foreign direct investment.

However, the project also faces challenges. The four-year delay raises concerns about execution and political commitment. Efficient coordination between Nepal and China, timely funding, and overcoming bureaucratic hurdles will be critical for its success. Furthermore, ensuring equitable local participation and environmental sustainability will determine its long-term viability.

A Vision for the Future

Once operational, the Nepal-China Industrial Friendship Park could serve as a model for industrial development in South Asia. With the right strategy and consistent effort, it can not only strengthen Nepal’s economy but also position the country as a competitive industrial hub in the region.

The park is not just a local project; it represents a national aspiration for industrial revolution and economic independence. As construction progresses, it will be crucial to maintain transparency, efficiency, and inclusiveness to realize its full potential.