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KATHMANDU, Dec 3: In a significant boost to Kathmandu Valley’s long-awaited traffic reforms, Nepal and Japan on Wednesday signed an Official Development Assistance (ODA) loan agreement worth 34.49 billion Japanese Yen (approximately Rs 31.76 billion) to overhaul one of the capital’s busiest and most chaotic transport corridors.
The Koteshwor Intersection Improvement Project—seen as a transformative intervention for urban mobility—aims to untangle chronic congestion at three key junctions: Tinkune, Koteshwor, and Jadibuti. These intersections serve as vital gateways linking Kathmandu, Lalitpur, and Bhaktapur, yet are notorious for daily traffic bottlenecks that drain time, fuel, and productivity.
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The exchange of notes was signed by Finance Secretary Dr Ghanashyam Upadhaya and Japanese Ambassador Maeda Toru, marking Japan’s renewed commitment to Nepal’s infrastructure development. A separate loan agreement was inked between Dhani Ram Sharma, Joint Secretary at the International Economic Relations Division, and Matsuzaki Mizuki, Chief Representative of JICA Nepal. Finance Minister Rameshore Prasad Khanal witnessed the signing ceremony.
Designed with grade-separated structures—flyovers and underpasses—the project promises smoother, safer commutes along a corridor used by hundreds of thousands each day. Officials say the improvements will not only ease vehicular flow but also strengthen economic activity by speeding up logistics and reducing travel time.
JICA’s Chief Representative Matsuzaki Mizuki underscored the project's broader impact, noting that it will “improve daily life, revitalize economic activity, and create a more comfortable urban environment” for Valley residents. He stressed that sustained cooperation among all stakeholders will be crucial to delivering the project on schedule.
The eight-year project will be led by the Ministry of Physical Infrastructure and Transport and implemented by the Department of Roads. The loan, extended on highly concessional terms, includes a 40-year repayment period, a 10-year grace period, and a nominal annual interest rate of 0.2 percent—making it one of the most favourable development finance packages Nepal receives.
With Kathmandu Valley’s traffic burden swelling each year, the Koteshwor upgrade is being welcomed as a long-overdue step toward a more efficient and livable capital.
