KATHMANDU: Nepal has formally accepted a $4 million cash grant from the Chinese government to support the upcoming House of Representatives elections on March 5, 2026, but the assistance comes with strict conditions, a diplomatic note obtained by Nepal News shows. The February 20, 2026 note from the Chinese Embassy specifies that the funds must be used solely for mobilizing and equipping temporary election police, providing their uniforms and logistical support, and for election monitoring and oversight by the Armed Police Force.

Here is the full text of Chinese embassy diplomatic note:

NEC/116/26
The Embassy of the People’s Republic of China in Nepal presents its compliments to the Ministry of Foreign Affairs of the Government of Nepal and has honour to inform the latter as follows:

According to the consensus reached between China and Nepal, the Government of China agrees to provide the Government of Nepal with cash assistance of 4 million US Dollars (equivalent to 28 million RMB) to support the upcoming House of Representatives Election of Nepal in 2026. The cash assistance will be disbursed in US Dollars and paid off under the grant assistance fund stipulated in Economic and Technical Cooperation Agreement between the Government of China and the Government of Nepal signed on August 15, 2017.

As the request of Chinese side, the Nepali side shall provide the credit account opened at the Nepali Central Bank, and the account information form is attached. In reference to your Note Ref. No. NEA/CHN-31/6515, the cash assistance will be used for the following 4 areas:
1. Mobilization of Election Temporary Police
2. Uniform of Election Temporary Police
3. Logistical Support for Election Temporary Police
4. Election Monitoring and Oversight Activities by Armed Police Force

Please ensure the funds are used exclusively for the aforementioned purposes.

And each withdrawal of the funds should be applied for by the Ministry of Finance of Nepal through diplomatic channel to the Chinese Embassy in Nepal, and only after approval can the funds be disbursed by the Nepali Central Bank. Looking forward to your reply at the earliest convenience.

The Embassy of the People’s Republic of China in Nepal avails itself of this opportunity to renew to the Ministry of Foreign Affairs of the Government of Nepal the assurances of its highest consideration.

(Official Seal of the Embassy of the People’s Republic of China in Nepal)
Kathmandu, February 20, 2026

Ministry of Foreign Affairs
Government of Nepal
Kathmandu
Cc: Ministry of Finance