Japan grants Rs. 2.6 billion to reconstruct BP Highway

Kathmandu, Oct. 30

The government of Japan has agreed to provide financial support worth R. 2.6 billion for the repair and reconstruction of the BP Highway, which was damaged by the floods in September last year.

The government of Nepal and JICA signed a grant agreement of up to 2.8 billion Japanese Yen (Rs. 2.6 billion) for the Emergency Rehabilitation of Sindhuli Road Affected by Floods on Thursday.

Secretary at the Ministry of Finance (MoF) Ghanashyam Upadhaya and Ambassador of Japan to Nepal Maeda Toru signed the exchange of notes for the same.

Similarly, the agreement was signed by chief of the Foreign Aid Coordination Division (FACD) at the MoF Dhani Ram Sharma, and Chief Representative of JICA Nepal Office Matsuzaki Mizuki.

According to a statement issued by the MoF, Finance Minister Rameshore Prasad Khanal and Home Minister Om Prakash Aryal were present at the signing ceremony.

Between September 26 and 29, 2024, a torrential rainfall in Nepal caused severe flooding and landslides, significantly damaging a few sections of the BP Highway - a vital route connecting Kathmandu to the Eastern Tarai.

“The grant aid is expected to support Nepal’s effort to strengthen the disaster resilience of the Sindhuli Road and recover from the damages for efficient operation,” read the statement.

The 160 km national highway connecting Kathmandu to the Mid and Eastern Tarai, was completed with Japanese Grant Aid of around 25.8 billion Japanese Yen, the largest such grant globally.

“Since becoming operational in March 2015, it has significantly reduced travel time from over 9 hours to just 5 hours between Kathmandu and Bardibas,” read the statement.

JICA has also supported the construction of Kathmandu-Bhaktapur Road (9.1 km) and the ongoing construction of Nagdhunga Tunnel.

  Published in The Rising Nepal daily on 31 October 2025.