Kathmandu, June 21: The Government of Japan has agreed to extend a grant assistance totaling 23 million 961 thousand US dollars (approximately 1,687 million rupees) to His Majesty’s Government of Nepal for the Sindhuli Road project (Section II: Sindhuli Bazar-Khurkot) and the first portion of the debt relief measures in Japan’s fiscal year 2000.

Japanese ambassador to Nepal Mitsuaki Kojima and Dr. Bimal Prasad Koirala, Secretary of the Ministry of Finance, HMG, signed and exchanged the two separate Notes today on behalf of their respective governments, a Japanese Embassy press release said.

Under the first note, the government of Japan will provide 23 million 143 thousand US dollars (approximately one billion, 629 million rupees) for the construction of Sindhuli Road (Section II: Sindhuli Bazar-Khurkot).

The 160 Km long Sindhuli road under construction has four sections. Section II, which stretches from Sindhuli Bazar to Khurkot, is about 40 Km, in length. Once it is completed, the road is expected to be the main corridor between the capital city of Kathmandu and Mahendra Highway (East-West Highway) in Terai via Kavrepalanchowk, Ramechhap and Sindhuli districts.

Under the second Note, the Government of Japan will provide 818 thousand US dollars (approximately 58 million rupees) as the first portion of debt relief measures. The grant will be used to procure essential commodities such as construction materials, fertilizers, medicines, petroleum products, transportation related equipment etc. for the development of Nepal.

These two economic assistance are the first such assistance Japan will provide to Nepal during fiscal year 2000, starting April 1 till March in the following year. It is believed that with the continued Japanese cooperation for the development endeavours of Nepal, the relations of friendship and cooperation between Japan and the Kingdom of Nepal will be further enhanced, the press release said.