Kathmandu-Chinese companies dominate various sectors in Nepal, including telecom, hydropower, roads, airports, mining, and irrigation. They outbid others in construction work, from banknotes printing to towers, especially  in developing countries like Nepal.

Western countires and it's  companies allege that Chinese firms win contracts due to state-backed bribery. They claim that Chinese companies bribe officials to set favorable standards, prioritize cheaper bids over quality, and award contracts to Chinese companies.

Another allegation concerns loans. China provides loans with conditions that allow China to set project costs and award contracts to Chinese companies, giving them an advantage over competitors.

Many of these allegations appear in contracts in Nepal. The Pokhara International Airport case fits the second allegation.

Huawei recently secured Nepal Telecom’s billing contract, influencing political leaders and shaping the process to ensure a non-competitive award. The company pushed weak technology with specifications that increase future costs, maintaining its dominance.

Companies from developed countries face action at home if found guilty of bribery abroad, but critics say Chinese companies face no such risk and even enjoy state protection.

The United States recently punished one of its companies involved in Nepal Airlines wide-body aircraft procurement for Nepal.

In China, the government encourages companies to secure contracts abroad, as seen with Huawei and the Pokhara airport project.

The anti-graft body in Nepal recently filed a case against China CAMC Engineering, detailing how the company increased project costs to win the contract and how the Chinese government supported it.

The Exim Bank of China, under an agreement with China, provided the loan for the project. However, the terms required a Chinese firm to handle it. Despite not meeting the minimum qualification, the company won the contract. China pressured Nepal to accept the condition, and the company influenced officials to raise the cost estimate.

The company, backed by the Chinese government, used bribery to secure the award.