Japan has extended a grant assistance of 2.8 billion yen, equivalent to Rs2.6 billion to Nepal for the emergency rehabilitation of the Sindhuli Road, which was severely damaged by floods in September 2024.

The Exchange of Notes for the grant was signed between Ambassador of Japan to Nepal, Toru Maeda, and Finance Secretary Ghanashyam Upadhyaya during a ceremony attended by Finance Minister Rameshore Prasad Khanal and Home Minister Om Prakash Aryal.

Constructed between 1995 and 2015 with Japanese support totalling 25.8 billion yen, the 160-kilometre Sindhuli road links the mid and eastern Terai with Kathmandu. The road has played a vital role in facilitating trade and contributing to Nepal’s economic growth.

Following continuous heavy rainfall last September, more than 10 kilometres of the road was washed away, disrupting transportation and impacting local livelihoods as well as the broader economy.

“The Government of Japan is committed to supporting the swift restoration of Sindhuli Road, which has long stood as a symbol of friendship and cooperation between Japan and Nepal,” the Embassy of Japan said in a statement.

The embassy added that the project would help Nepal move towards sustainable economic development while further deepening the cordial relationship between the two nations.