Embassy of Japan in Nepal


June 9, 2005

Japan Extends Grant Assistance for Sindhuli Road (Phase III of Section II)

The Government of Japan has decided to extend a grant, in Japan's FY 2005, of up to two billion, five hundred and eighty-eight million Japanese Yen (2,588,000,000), equivalent to one billion, seven hundred and five million, four hundred and ninety-two thousand Nepalese Rupees (NRs.1,705,492,000), or approximately twenty-four million, two hundred and forty-three thousand US Dollars (US$24,243,000) to His Majesty's Government of Nepal for the project for the construction of the Sindhuli Road (Phase III of Section II: Sindhuli Bazar - Khurkot Section).

His Excellency Mr. Tsutomu Hiraoka, Ambassador of Japan to the Kingdom of Nepal and Mr. Bhanu Prasad Acharya, Secretary of the Ministry of Finance, signed and exchanged a set of Notes today on behalf of their respective governments.

The Grant extended to His Majesty's Government of Nepal today is intended to procure the products and services necessary for the execution of Phase III of Section II (Sindhuli Bazar - Khurkot section) of the Sindhuli Road, which stretches for about 13.7 km.

The Government of Japan has been extending grant assistance to His Majesty's Government of Nepal for the construction of the Sindhuli Road since 1996. The project for the construction of the Sindhuli Road, stretching from Bardibas to Dhulikhel, is about 158km in length and is divided into four sections. Among the four sections, Section II stretches from Sindhuli Bazar to Khurkot for about 39 km.

In implementing the project for the construction of the Sindhuli Road, the Government of Japan had already extended twelve billion, seven hundred and ninety-seven million Japanese Yen (12,797,000,000) in total to His Majesty's Government of Nepal for the construction of (i) Section I: Bardibas - Sindhuli Bazar section, (ii) Phase I and Phase II of Section II: Sindhuli Bazar - Khurkot section, and (iii) Phase I and Phase II of Section IV: Dhulikhel - Nepalthok section.

After the completion of Phase III of Section II, approximately a 126km road section of the Sindhuli Road will be completed. On May 5th, 2005, following Section I, which was handed over in Japan's FY1997, the Government of Japan handed over Section IV of the Sindhuli Road to His Majesty's Government of Nepal. Since Phase I of Section II has been opened, as of today, out of the 158km long highway, 99.5km have already been opened for traffic movement. Once Phase II and Phase III of Section II is completed the remaining part will be Section III (Khurkot - Nepalthok section).

The Sindhuli Road is one of the most promising projects being implemented under the Japan's ODA. It aims to achieve sustainable economic development and alleviate poverty through boosting the socio-economic activities in the areas adjoining the project as well as providing alternative access for the capital city in terms of market accessibility etc. In addition, this road reduces the distance to the eastern Terai by about 170km, which will save time and operation cost, undoubtedly contributing to the market price.

Considering the aspirations of the people of Nepal, the Government of Japan has been responding to Nepal's requests to achieve sustainable socio-economic development for poverty alleviation, which will ultimately facilitate peace building and human security.

On the occasion, HE Mr. Hiraoka also expressed his sincere hope that this road will prove to be another milestone for enhancing the already very cooperative relationship between Japan and the Kingdom of Nepal.



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