ODA Loan Agreement Signed for Implementation of Koteshwor Intersection Improvement Project

Government of Nepal and JICA have signed Agreement to provide Official Development Assistance (ODA) loan up to 34.49 billion Japanese Yen (approx. NPR 31.76 billion) for the “ Koteshwor Intersection Improvement Project” .

The Exchange of Notes regarding the assistance was signed by Dr. Ghanashyam Upadhaya, Secretary, Ministry of Finance on behalf of the Government of Nepal (GoN) and His Excellency Mr. MAEDA Toru, Ambassador of Japan to Nepal on behalf of the Government of Japan (GoJ). Similarly, the Loan Agreement was signed by Mr. Dhani Ram Sharma, Joint Secretary, International Economic Relations Division (IERD), Ministry of Finance on behalf of GoN and Mr. MATSUZAKI Mizuki, Chief Representative of JICA Nepal Office.
The signing ceremony was held in the Honorable presence of Hon’ble Finance Minister Mr. Rameshore Prasad Khanal.

With this project, Kathmandu, Lalitpur and Bhaktapur districts are set for a major traffic upgrade, aimed at easing congestion and improving traffic flow at three critical junctions—Tinkune, Koteshwor, and Jadibuti. The project will introduce grade-separated structures, a move expected to significantly reduce bottlenecks at major intersections and enhance urban mobility.

Officials highlight that the initiative will not only improve transportation efficiency and ease congestion but also contribute to driving economic growth and urban development in the Kathmandu Valley.
Mr. MATSUZAKI stressed in his remarks that the importance of continued collaboration among all stakeholders to accelerate the implementation of this initiative, ensuring that local communities and the people of the Valley will soon benefit from this project. The initiative aims to create a more comfortable urban environment and revitalize social and economic activities through improved transportation and logistics enabled by this modern infrastructure.

The planned upgrade is expected to significantly mitigate traffic congestion along one of Kathmandu’s busiest corridors, enhancing connectivity and improving the daily commuting experience for thousands of people. This project represents a critical step toward building a sustainable, efficient, and modern transportation network for Nepal’s future.

The eight-year project is led by the Ministry of Physical Infrastructure and Transport and implemented by the Department of Roads. It is financed through a concessional loan, repayable over 40 years, with a 10-year grace period and an annual interest rate of 0.2%.


For more details, please contact:
Ms. Brinda Singh - Public Relations Officer (JICA Nepal Office)
Singhbrinda.np@jica.go.jp