Nepal’s anti-graft watchdog says state-owned China CAMC Engineering, in tandem with Nepali officials, colluded to inflate the costs of a Belt and Road airport project.

By Binod Ghimire and Daisuke Wakabayashi for The New York Times

For the original article this summary is based on, see the publisher’s website here.

In Brief by Probe International

Nepal’s anti-corruption watchdog drops a bombshell: Chinese state-owned giant CAMC Engineering and its top executives (including chairman Wang Bo) have been formally charged for colluding with Nepali officials to inflate Pokhara International Airport costs by $75 million — more than 40% above the original estimate.

The charges directly confirm a 2023 New York Times investigation that exposed cost-padding and bypassed quality controls. A 33-page filing by Nepal’s Commission for the Investigation of Abuse of Authority accuses the Chinese firm of “malicious intent” and rigging the bidding process for illegal gains.

The case constitutes a rare move: a Belt and Road host country is actually prosecuting a Chinese state company.

The nearly $250 million airport—a flagship Belt and Road project built at the foothills of the Himalayas with a 20-year loan from the Export-Import Bank of China—still has no regular international flights, leaving Nepal on the hook for debt with little revenue.

As Nepal grapples with the implications of corruption and seeks greater transparency in future dealings, the fallout from this scandal could significantly impact its relationship with China.