The second phase of Kathmandu’s Ring Road expansion formally moved forward on Wednesday with the signing of an assistance agreement.

The agreement was signed by Minister for Physical Infrastructure, Transport and Urban Development Sunil Lamsal and Chinese Ambassador to Nepal Zhang Maoming.

Under the deal, the 8.2-kilometre stretch from Kalanki to Basundhara will be widened, with a concrete bridge at Dhungedhara and three disability-friendly pedestrian bridges at Sitapaila–Balaju, Balaju–Machhapokhari, and Samakhusi–Basundhara Police Post. Streetlights from Kalanki to Basundhara Chowk will also be installed.

China will provide around Rs11 billion in grant support for the project. The first phase, from Koteshwar to Kalanki, was completed in 2019.

Minister Lamsal said any issues arising during implementation would be resolved within a day, highlighting the government’s priority on north–south connectivity and expressing hope for further Chinese investment in Nepal’s infrastructure.

Chinese Ambassador Zhang said a favourable investment environment would encourage more Chinese investors to enter Nepal.