Kathmandu, Jan. 10: The Government of Japan has agreed to provide grant assistance to His Majety’s Government. Two separate notes to this effect were signed and exchanged between His Majesty’s Government and the Government of Japan here today, according to a press release of the Ministry of Finance.

Under the first note, the Government of Japan will provide a grant assistance of about Rs. 48.2 million to carry our detailed design of approximately 39 km long Sindhuli Bazaar-Khurkot section of Dhulikhel-Sindhuli road. The detailed design of this section is expected to be completed within one year.

It may be recalled that the construction of 37 km long Sindhuli Bazaar-Bardibas section has been completed and 50 km long Dhulikhel-Nepalthok section is under construction with the financial and technical assistance provided by the Government of Japan since 1996.

Under the second note Japan will provide a grant assistance of about Rs. 56.7 million to His Majesty’s Government under the debt relief measures.

The grant assistance is in lieu of repayment of the principal and the accured interest of the outstanding loans extended by the Government of Japan to His Majesty’s Government.

The Government of Japan has been providing such grant assistance to Nepal under its debt relief measures since FY 1978.

The grant assistance from the Japanese Government under its debt relief measures is used to procure commodities which are essential for various development works.

This grant assistance is the third portion of debt relief measures for the Japanese fiscal year 1999.

The letter were signed by Mr. Ram Binod Bhattarai, secretary at the Ministry of Finance and Japanese ambassador Mitsuaki Kojima on behalf of His Majesty’s Government and the Government of Japan respectively.

His Majesty’s Government has expressed its sincere appreciation to the Government of Japan for this assistance and for its keen interest and continued support for the socio-economic development of Nepal.