Govt to request China to build ICP in Rasuwagadhi

KATHMANDU, Jan 13: The government has initiated the process of formally proposing the Chinese government to support construction of Integrated Check Point (ICP) in Rasuwagadhi customs point.



The move came after Chinese officials said they were positive about helping Nepal upgrade infrastructure at Rasuwagadhi customs post.[break]



“We will forward the proposal to the Chinese side after holding discussion with line ministries for arranging land for the proposed ICP,” Naindra Prasad Upadhyaya, joint secretary at the Ministry of Commerce and Supplies (MoCS), told Republica on Saturday.



The MoCS has called meeting of secretaries from different ministries, including Ministry of Finance and Ministry of Physical Planning, Works and Transport Management, on Tuesday to discuss modus operandi for acquiring land needed for the construction of ICP.



Officials say the proposed Rasuwagadhi ICP holds great potential to boost Nepal´s trade with China.



“We see enormous trade and tourism prospects in Rasuwagadhi - the second largest customs point along northern border," said Upadhyaya.



The Chinese government has already developed ICP at Kerung that adjoins Rasuwagadhi customs.



“Once the ICP is constructed, we can boost our trade with China by establishing road connectivity with Kathmandu,” Upadhyaya said.



Nepal has been suffering huge trade deficit with the Asia´s largest economy due to weak export base and poor infrastructure. China has provided duty free access to 7,787 goods originated from Least Developed Countries (LDCs), including Nepal. However, Nepal is in a position to supply less than 400 goods to China due to weak supply capacity and lack of infrastructure to support bi-lateral trade.



Data compiled by Trade and Export Promotion Center (TEPC) shows Nepal´s trade deficit with China increased to Rs 51.94 billion during 2011/12, up from Rs 44.89 billion recorded a year earlier.



In a bid to improve Nepal´s trade infrastructure, China is helping the country build Inland Container Depot (ICD) in Larcha of Sindhupalchowk. Construction works on the ICD started in December and is expected to complete within 26 months. Once into operation, it will facilitate Nepal´s trade with China via Tatopani customs point.

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