Japan has agreed to provide the loan assistance for 40 years at 0.01 per cent interest rate as per the agreement signed at the Ministry of Finance this morning.
The Exchange of Notes to this effect was signed by Finance Secretary Dr Shanta Raj Subedi and Japanese Ambassador to Nepal, Masashi Ogawa, on the presence of Deputy Prime Minister and Minster for Finance Krishna Bahadur Mahara and Minister for Physical Infrastrcuture and Transport, Ramesh Lekhak.
Likewise, Joint Secretary and Chief of International Economic Cooperation Coordination Division at Ministry of Finance, Baikuntha Aryal, and Chief Representative of JICA Nepal Office, Jun Sakuma, signed the loan agreement.
After the signing ceremony, Finance Secretary Dr Subedi said the project has been taken as the national pride project and extended sincere appreciation and thanks to the Government of Japan for the assistance.
On the occasion, Ambassador Ogawa said that the project would remain as a milestone of the Nepal-Japan relations and that it should be completed as a new symbol of the bilateral relation.
The Japanese project, aiming at improving the alignment of the existing road, reducing the travel time and enhancing traffic safety in Nagdhunga-Naubise area, would be completed by 2022.
According to the press release shared on the occasion, the major activities of the project are construction of 2.35 km of tunnel with two motor able lanes and one extra lane, construction of 2.25 km approach road and establishment of the power supply facilities.
The Ministry of Physical Infrastructure and Transport will be the executing agency and the Department of Roads will be responsible for the implementation of the project, the release informed.
The cost of the project is about 21 billion Japanese Yen out of which Japan will provide 16.636 billion and remaining fund will be managed by Nepal government. RSS