The Government of Japan has extended grant assistance worth 2.8 billion yen (approximately Rs 2.6 billion) to Nepal for the “Emergency Rehabilitation of Sindhuli Road Affected by Floods.”
A signing ceremony for the Exchange of Notes was held today in Kathmandu in the presence of Finance Minister Rameshore Prasad Khanal and Home Minister Om Prakash Aryal. The agreement was signed by Ambassador of Japan to Nepal, Maeda Toru, and Finance Secretary Ghanshyam Upadhyaya, according to a press release issued by the Embassy of Japan.
The Sindhuli Road, a 160-kilometer route linking the mid and eastern Terai region with Kathmandu, was constructed with Japanese grant assistance of 25.8 billion yen between 1995 and 2015. The road has played a crucial role in boosting Nepal’s economic growth and improving connectivity between the hills and the plains.
However, the road suffered serious damage due to continuous heavy rainfall and flooding in September 2024, with more than 10 kilometers of the route being washed away. The damage has had a severe impact on local livelihoods, trade, and transportation across Nepal.
The newly announced grant aims to restore and rehabilitate the damaged sections of the road, ensuring its continued role as a vital trade and travel corridor.
“The Government of Japan hopes that this project will contribute to Nepal’s sustainable economic development and further strengthen the long-standing friendship between Japan and Nepal,” the embassy stated.
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