Amid preparations for Prime Minister Pushpa Kamal Dahal’s upcoming visit to India, reports have surfaced indicating that the Nepal Army intends to acquire 26 armoured personnel carriers (APCs) worth Rs6 billion from China’s Norinco, a company blacklisted by the US. The APCs would be used by Nepali peacekeepers deployed on various UN peacekeeping missions. This development has raised concerns over the potential ramifications of procuring from a sanctioned supplier.
Controversial Deal: The Nepal Army had planned to purchase the APCs from Norinco through the Nepal Army Welfare Fund, with the decision made during Sher Bahadur Deuba’s tenure as Prime Minister and Defence Minister. However, the revelation that Norinco is on the US sanction list has left the army and local banks in a dilemma. The implications of procuring from a blacklisted Chinese company remain unclear.
Mixed Reactions and Uncertainty: While the Nepal Army remains determined to proceed with the purchase, Chief of Army Staff General Prabhu Ram Sharma recently stated that the army does not currently require weapons. However, he mentioned the potential need for vehicle parts. The issue has raised concerns about the timing and economic viability of the deal, as well as the possible international repercussions if the APCs are obtained from a blacklisted company.
Government Intervention and Future Outlook: Prime Minister Dahal has advised the Deputy Prime Minister and Defence Minister, Purna Bahadur Khadka, and General Sharma against the purchase, citing potential negative consequences during his India visit and the government’s economic challenges. Moreover, if the matter reaches Parliament, it could lead to controversy and ultimately compel the government to cancel the deal.
Expert Opinions: Former Nepal Army Chief Gaurav Sumsher Rana stressed the importance of adhering to competitive bidding processes and government procurement rules. He emphasized the need for careful consideration and proper procedures when procuring weapons, highlighting that the army cannot spend significant sums of money at once.
Concerns Over Sanctions and Reimbursement: There are concerns that the US, a major contributor to UN peacekeeping missions, could create obstacles if the Nepal Army procures APCs from a blacklisted Chinese company. Given Norinco’s involvement with Myanmar’s government, which is also under global sanctions, international repercussions and restrictions on the deployment of the APCs cannot be ruled out.
Current Status and Way Forward: The procurement process for the APCs has been temporarily halted due to the discovery of Norinco’s blacklisting. However, officials suggest that the process could resume, possibly during General Sharma’s visit to China in June or July. The Nepal Army has previously found alternative ways to circumvent sanctions, but the long-term implications and potential consequences of such actions remain uncertain.
Conclusion: The Nepal Army’s plans to procure APCs from a US-blacklisted Chinese supplier have created a contentious situation. The concerns over potential repercussions, international sanctions, and the need for transparent procurement processes highlight the complexity of acquiring military equipment. As the issue unfolds, it remains to be seen whether the Nepal Army will proceed with the deal or explore alternative options.
