The Government of Nepal and JICA have signed a major Official Development Assistance (ODA) loan agreement worth 34.49 billion Japanese Yen (approx. Rs 31.76 billion) for the Koteshwor Intersection Improvement Project, aimed at easing traffic congestion in the Kathmandu Valley.
The Exchange of Notes was signed by Dr. Ghanashyam Upadhaya, Finance Secretary, and Japanese Ambassador Maeda Toru. The loan agreement was signed by Joint Secretary Dhani Ram Sharma and JICA Nepal Chief Representative Matsuzaki Mizuki, in the presence of Finance Minister Rameshore Prasad Khanal.
The project will introduce grade-separated structures at the busy Tinkune, Koteshwor, and Jadibuti intersections across Kathmandu, Lalitpur, and Bhaktapur. These upgrades are expected to significantly reduce bottlenecks, improve mobility, and contribute to economic growth and urban development.
Officials highlighted that the project will enhance transportation efficiency and create a more comfortable urban environment. Matsuzaki emphasized the importance of strong collaboration among stakeholders to ensure timely implementation and community benefits.
The eight-year project, led by the Ministry of Physical Infrastructure and Transport and implemented by the Department of Roads, will be financed through a concessional loan with a 40-year repayment period, a 10-year grace period, and an annual interest rate of 0.2%.
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