Fiscal Nepal
First Business News Portal in English from Nepal
Sunil Lamsal Chinese envoy to Nepal
KATHMANDU: Nepal and China have formally signed an agreement to implement the second phase of the Kathmandu Ring Road expansion project, marking a major step forward in upgrading one of the capital’s most critical transport corridors.
The agreement was signed on Wednesday between Minister for Physical Infrastructure, Transport and Urban Development Sunil Lamsal and Chinese Ambassador Zhang Maoming, under a bilateral assistance framework aimed at strengthening urban connectivity and infrastructure capacity in the Kathmandu Valley.
Under the agreement, the second phase will focus on expanding and upgrading an 8.2-kilometre stretch from Kalanki to Basundhara, including road widening and bridge construction. The project is expected to significantly ease traffic congestion along one of the busiest urban corridors in Kathmandu.
The project will be financed through a Chinese government grant of approximately Rs 11 billion, reinforcing China’s continued role as a key infrastructure development partner in Nepal.
The first phase of the Ring Road expansion, covering the Koteshwor–Kalanki section, was completed earlier after being launched in 2019. That phase helped improve traffic flow in the southern and western sections of the capital, although congestion challenges remain due to rapid urbanization and rising vehicle density.
Speaking after the signing ceremony, Minister Lamsal assured that the government would ensure rapid implementation of the project and resolve any bottlenecks within a short timeframe.
He emphasized that developing north–south and east–west transport corridors remains a national priority, highlighting the strategic importance of urban infrastructure in supporting economic growth, mobility, and investment expansion.
Chinese Ambassador Zhang Maoming stated that Chinese investors remain highly interested in Nepal’s infrastructure and development sector, provided that the investment climate remains stable and predictable.
He also reaffirmed China’s willingness to continue supporting Nepal’s infrastructure development through both grants and potential future investment cooperation.
The Ring Road expansion is considered a key urban mobility project for Kathmandu, aimed at addressing chronic traffic congestion, improving logistics efficiency, and supporting long-term urban planning.
With the second phase now formally agreed, authorities are expected to move toward implementation planning, contractor selection, and project mobilization in the coming months.
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