The government has signed a new agreement with China to begin the second phase of the long-delayed expansion of the Kathmandu Ring Road, a major infrastructure project expected to ease traffic congestion in the capital.
The agreement was signed on Wednesday by Physical Infrastructure, Transport and Urban Development Minister Sunil Lamsal and Chinese Ambassador to Nepal Zhang Maoming. Under the deal, China will provide around Rs 11 billion in grant assistance for the project.
The second phase will expand an 8.2-kilometre stretch of the Ring Road from Kalanki to Basundhara, including the construction of roads and bridges. The project follows the completion of the first phase, which widened the Koteshwor-Kalanki section after work began in 2019.
Officials say the expansion is expected to improve traffic flow in some of the busiest parts of Kathmandu, where increasing vehicle numbers and narrow roads have contributed to chronic congestion.
After the signing ceremony, Minister Lamsal said the government would move quickly to resolve any obstacles during implementation and promised coordination support to prevent delays. He also said the government hopes to attract more Chinese investment in Nepal’s infrastructure sector, especially in projects linking north-south road corridors.
Ambassador Zhang said many Chinese investors remain interested in Nepal if the country can provide a stable and investment-friendly environment.
The Ring Road expansion has long been viewed as one of the capital’s most important urban infrastructure projects, with officials arguing it could improve transport, trade, and connectivity across the Kathmandu Valley.