Kathmandu: The government of Nepal has entered into a loan agreement of 34.59 billion Japanese yen (approximately Rs 31.76 billion) with Japan to enhance the Koteshwor Intersection. Signed at the Ministry of Finance, the agreement aims to ease traffic congestion through the construction of an underpass and a flyover along the Koteshwor-Jadibuti section.
According to National News Agency Nepal, the loan is provided through the Japan International Cooperation Agency (JICA) and includes a grace period of 10 years and a repayment period of 30 years, with an annual interest rate of 0.2 percent. The project will be executed by the Department of Roads under the Ministry of Physical Infrastructure and Transport.
The agreement was formalized by Finance Secretary Dr. Ghanashyam Upadhyay and Japan’s Ambassador to Nepal, Maeda Toru. Additionally, Dhaniram Sharma, representing the Ministry of Finance, and JICA Nepal’s Chief Representative, Matsuzaki Mizuki, signed the loan agreement.
Finance Minister Rameshore Prasad Khanal emphasized the importance of the loan in improving Kathmandu Valley’s traffic system and expressed his commitment to strengthening Nepal-Japan relations. Japan’s Ambassador noted the project’s potential to significantly enhance traffic management in the region, underscoring the enduring friendship between the two nations.
The signing ceremony was attended by senior officials from the Ministry of Finance, the Ministry of Physical Infrastructure and Transport, the Department of Roads, the Embassy of Japan, and JICA Nepal.