KATHMANDU: The Government of Japan has provided a grant of around USD 17 million to support the emergency rehabilitation of the BP Highway, which suffered heavy damage from floods and landslides in late 2024.
The grant agreement was signed in Kathmandu between the Government of Nepal and the Japan International Cooperation Agency (JICA). The exchange of notes was signed by Ghanshyam Upadhyaya, Secretary at the Ministry of Finance, and Maeda Toru, Ambassador of Japan to Nepal.
The agreement itself was signed by Dhani Ram Sharma, Joint Secretary at the Ministry of Finance, and Matsuzaki Mizuki, Chief Representative of JICA Nepal.
Finance Minister Rameshore Prasad Khanal and Home Minister Om Prakash Aryal were present at the signing ceremony.
The 160-kilometer Sindhuli Road is a key route connecting Kathmandu with the eastern Tarai. Continuous rainfall between September 26–28, 2024, and again in October 2025, caused severe damage to several sections of the highway, disrupting transport and trade links.
The new grant will fund urgent repairs and help strengthen the road’s resilience against future disasters. JICA said the project aims to restore safe and reliable connectivity while supporting the region’s economy and livelihoods.
Originally built with Japanese assistance worth USD 166 million, the BP Highway remains one of Japan’s largest road aid projects worldwide. Since opening in 2015, it has reduced travel time between Kathmandu and Bardibas from more than nine hours to about five.
Japan has long supported Nepal’s infrastructure development through major projects such as the Kathmandu–Bhaktapur Road and the ongoing Nagdhunga Tunnel, the country’s first road tunnel.
According to the Embassy of Japan, the rehabilitation project will not only restore a vital transport link but also “contribute to Nepal’s sustainable economic growth and further strengthen the friendship between Japan and Nepal.”
