Kathmandu: China is set to bolster ties with the Maoist-led government in Nepal with a massive USD 100 million financial aid soon after the landmark visit of Indian foreign minister to Kathmandu.

Chinese Foreign Minister Yang Jiechi, who is arriving in Kathmandu tomorrow on a three-day visit, will sign an economic and technical cooperation pact in which Beijing is expected to provide USD 100 million financial assistance to Nepal, Prime Minister Prachanda's foreign affairs advisor Hira Bahadur Thapa told PTI.

China is seeking to improve its relations with the Maoists after being seen as a supporter of the former royal regime in Nepal for most of the last five decades.

During the first high-level visit by Chinese officials after the formation of the Maoist-led government in August, the Chinese Minister will call on Prime Minister Prachanda, President Ram Baran Yadav, Foreign Minister Upendra Yadav and other senior political leaders, according to officials here.

Yang, in talks with his Nepalese counterpart Yadav, will discuss the entire range of bilateral relations, Foreign Ministry sources said. Earlier last week, a senior Chinese military delegation paid an official "goodwill" visit to Nepal.

China is also providing assistance to construct a civil servants hospital for Nepal and is also planning to build an Ayurvedic hospital-cum-research centre.

Beijing is also considering the possibility of extending its Tibet railway line to the Nepalese border.

Source : PTI