Embassy of Japan in Nepal


July 17, 2008
Japan Extends Grant for the Improvement of Kathmandu-Bhaktapur Road


The Government of Japan has decided to extend a grant up to two billion, six hundred and eighty-nine million Japanese Yen ( 2,689,000,000), approximately one billion, seven hundred and seventy-four million, seven hundred and forty thousand Nepalese Rupees (NRs.1,774,740,000), or equivalent to twenty-five million, seven hundred and ninety-five thousand US Dollars (US$25,795,000), to the Government of Nepal for the Project for the Improvement of Kathmandu-Bhaktapur Road in Japan's FY 2008.

His Excellency, Mr. Tatsuo MIZUNO, Ambassador of Japan to Nepal, and Mr. Rameshore Prasad Khanal, Secretary of the Ministry of Finance, Government of Nepal, signed and exchanged the Notes today on behalf of their respective governments, with the graceful presence of His Excellency Mr. Osamu UNO, Vice-Minister for Foreign Affairs of Japan and Honorable Dr. Ram Sharan Mahat, Minister of Finance of the Government of Nepal.

The Grant extended to the Government of Nepal is intended to be used to procure the products, equipment and services necessary for the execution of the Project. In implementing this Project, approximately a 9.1km segment of the Kathmandu-Bhaktapur Road section of the Araniko Highway will be upgraded by expanding the existing two-lane road to four-lanes. The Project will also take into consideration advanced traffic engineering so as to enable smooth traffic movement as well as protect ordinary citizens from traffic accidents.

The Kathmandu-Bhaktapur Road is designed to serve not only as a road to ensure smooth transportation of goods and people between Kathmandu and Bhaktapur, but also to play an important role linking the Kathmandu Valley with the Eastern Terai via the Araniko Highway and the Sindhuli Road (which connects Dhulikhel-Sindhuli-Bardibas of the East-West Highway). Furthermore, this road section will also improve the connection of the Kathmandu Valley with the north via the Araniko Highway, which is going to be a vital physical infrastructure for Nepal in terms of connectivity, considering the neighboring two growing economies of China and India.

After the completion of the Kathmandu-Bhaktapur Road, it is expected that it will help save time and reduce fuel expenses considerably for road users, who are currently facing a very congested traffic situation, especially during rush hours. It is expected that this Road Project will bring a positive impact to the Nepalese economy and also improve access to health and education institutions for the residents along the road.

Besides this Project, the Sindhuli Road, which is expected to significantly improve connectivity between the north and south, is now under construction with the Grant Assistance of the Government of Japan. It has already started to benefit the people residing along the completed sections of the road. Once fully completed, its economic and social impact will be substantial to the people of the Kathmandu Valley, including the people residing along the Sindhuli Road and Eastern Terai.

On the occasion, referring to the recently conducted historic Constituent Assembly Election and Proclamation of Nepal as a Federal Democratic Republic, H.E. Mr. MIZUNO congratulated the people of Nepal for successfully achieving such transformation, which is a huge step forward on the path toward peace and democracy in Nepal. It is a historic achievement made by the people of Nepal, which will lead to lasting peace and stability and socio-economic development in New Nepal.

H.E. Mr. MIZUNO reiterated that Japan, as a long-lasting friend of Nepal, is committed to assist Nepalese development efforts through whatever possible measures for Japan. H.E. Mr. MIZUNO further expressed his hope that this assistance will prove to be yet another milestone in further strengthening the friendly relationship between Japan and Nepal.



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