The Government of Nepal and the Government of Japan signed a major loan agreement today to upgrade Koteshwor Chowk. The signing took place at the Ministry of Finance in the presence of Finance Minister Rameshwor Prasad Khanal.
Japan has agreed to provide a loan of 34.59 billion Japanese Yen, which is equal to about NPR 31.76 billion. The loan, offered through JICA, comes with a 10-year grace period, a 30-year repayment period, and an annual interest rate of just 0.2 percent.
Under this project, an underpass and flyover will be built in the Koteshwor and Jadibuti sections. These structures are expected to make travel easier for vehicles moving between Kathmandu, Lalitpur, Bhaktapur, and the BP Highway. Officials believe the project will greatly help reduce traffic jams. The project will be carried out by the Department of Roads under the Ministry of Physical Infrastructure and Transport.
For the Exchange of Notes, Finance Secretary Dr. Ghanshyam Upadhyaya and Japanese Ambassador Maeda Toru signed the documents. The loan agreement itself was signed by Dr. Dhaniram Sharma, Chief of the International Economic Cooperation Division at the Finance Ministry, and Mitsuzaki Masuki, Chief Representative of JICA Nepal.
The event began with remarks from Dr. Sharma. After the signing, JICA Nepal Chief Mitsuzaki Masuki, Ambassador Maeda Toru, and Finance Minister Rameshwor Prasad Khanal addressed the gathering. All three expressed their commitment to strengthening bilateral cooperation.
The Japanese Ambassador said he believed the Koteshwor Chowk Improvement Project, supported by Japan’s concessional loan, would significantly improve the Valley’s transport system. He also recalled the long-standing friendship between Nepal and Japan.
Finance Minister Khanal said the project aims to fix one of the most congested areas in Kathmandu and will bring long-term improvements to the city’s traffic management.
Senior officials from the Ministry of Finance, the Ministry of Physical Infrastructure and Transport, the Department of Roads, the Japanese Embassy, and JICA Nepal were present at the ceremony.
