KATHMANDU: The long-delayed Kalanki-Basundhara road expansion under the second phase of the Ring Road Improvement Project has moved forward after Nepal and China signed a new agreement on Wednesday.
The agreement was signed between Minister for Physical Infrastructure and Transport and Urban Development Sunil Lamsal and Chinese Ambassador to Nepal Zhang Maoming.
With this, the uncertainty surrounding the project has largely ended. Under the agreement, the Chinese government will build the 8.2 km road section, including bridges, under grant assistance. The Ministry stated that China will provide around Rs 11 billion in support.
According to Arjun Prasad Aryal, Chief of the Development Assistance Implementation Division under the Department of Roads, the Chinese side will now submit the road design and DPR to the department.
He said the department will review the design. If revisions are needed, suggestions will be sent. If everything is in order, approval will be granted.
Aryal also said the construction model has not been disclosed yet. If China uses the EPC model, the contractor may already be selected. In that case, work can begin soon after design approval.
If another model is used, a new tender process will be required. That could delay construction by around one to one-and-a-half months. All tender-related procedures will be handled by the Chinese side.
China had earlier prepared the design after a technical team visited Nepal in 2025. The DPR was prepared by CCCC First Highway Consultants Company.
As per the proposed design, the Kalanki-Basundhara section will be 62 meters wide. It will include an 8-lane road with service lanes, footpaths, a median, and green belts.
The project also includes a concrete bridge at Dhungedhara. Skywalk bridges are planned at Sitapaila, Balaju, and near the Basundhara Police Station.
The Cabinet meeting held on February 24, 2026, had already approved full tax exemptions for the project.
Under the first phase, the 10.39 km Koteshwor-Kalanki section was expanded to 8 lanes. Construction started in 2012 and was completed in 2018.
Under the third phase, the 700-meter Maharajgunj-Chappal Karkhana section has already been built using Nepal’s own investment.
The Chappal Karkhana-Dhobikhola section is now in the tender preparation stage. However, no clear progress has been made for the Chabahil-Koteshwor section yet.
