KATHMANDU: The Government of Japan has pledged grant assistance worth 2.8 billion yen (approximately Rs 2.6 billion) for the emergency reconstruction of the Sindhuli section of BP Highway, which was severely damaged by floods in September 2024.
Nepal News
The Exchange of Notes was signed in Kathmandu in the presence of Finance Minister Rameshore Prasad Khanal and Home Minister Om Prakash Aryal. MAEDA Toru, Ambassador of Japan to Nepal, and Ghanshyam Upadhyaya, Secretary of the Ministry of Finance, officially signed the agreement.
Nepal News
The Government of Nepal and the Japan International Cooperation Agency (JICA) have signed a grant agreement worth up to Rs 2.6 billion for the “emergency rehabilitation” of flood-damaged sections of the BP Highway (Sindhuli Road).
New Business Age
“Government of Nepal and JICA have signed Grant Agreement to provide Grant Aid up to 2.8 billion Japanese Yen (NPR 2.6 billion) for the ‘Emergency Rehabilitation of Sindhuli Road Affected by Floods’,” JICA said in a statement Thursday, October 30.
New Business Age
The exchange of notes regarding the grant was signed by Ghanashyam Upadhaya, Secretary at the Ministry of Finance, on behalf of the Government of Nepal, and Maeda Toru, Ambassador of Japan to Nepal, on behalf of the Government of Japan. The grant agreement itself was signed by Dhani Ram Sharma, Joint Secretary at the Ministry of Finance’s Foreign Aid Coordination Division, and Matsuzaki Mizuki, Chief Representative of JICA Nepal. Finance Minister Rameshore Prasad Khanal and Home Minister Om Prakash Aryal attended the signing ceremony.
New Business Age
The 160km BP Highway connects the mid and eastern Terai regions with Kathmandu. Originally constructed with Japanese assistance totaling 25.8 billion yen from 1995 to 2015, the road has long been a key driver of Nepal’s economic growth. Continuous heavy rains in September 2024 led to over 10km of the road being washed away, severely impacting local communities, trade, and transportation. The Japanese grant will help restore and rehabilitate the road, ensuring it continues to serve as a crucial transportation route and a symbol of friendship between Japan and Nepal.
Nepal News
Floods and landslides triggered by torrential rain between September 26 and 28, 2024, severely damaged several sections of the 160-km highway — a vital trade and transport route connecting Kathmandu with eastern Tarai. Floods due to continuous rainfall from October 3 to 5, 2025, caused further damage to the same stretches.
New Business Age
Share Your Thoughts
What impact could this grant have on local communities along the Sindhuli section of BP Highway?
Do you agree with how media outlets have covered the agreement and its expected outcomes?
How should policymakers and implementers prioritise repairs vs. longer-term resilience measures on BP Highway?
What lessons should Nepal take from this reconstruction effort to reduce future flood damage on major roads?
How can communities and local governments be more involved as reconstruction proceeds?