Chinese Ministry of Commerce provides grant for Phase 2 of Kathmandu Ring Road Improvement Project (Linked to Record ID#34420)

The Chinese Government is financing Phase 2 of the Kathmandu Ring Road Improvement Project via a grant arrangement. This phase involves the expansion of an 8.2 km section of road from Kalanki to Basundhara in Kathmandu, Nepal.

The project will widen the existing road to eight lanes (excluding service lanes) and include a 3-meter-wide median strip.

Design features include a flyover at the Machhapokhari intersection and a bridge at Dhungedhara to improve traffic safety and flow.

Phase 2 follows the Koteshwor–Kalanki section (Phase 1), which was completed in 2018 with Chinese grant support and is recorded under Record ID#34420.

Phase 1 received criticism due to poor road design contributing to multiple traffic fatalities, prompting a redesign in Phase 2 that emphasizes safety. A cooperation agreement for Phase 2 was signed between Chinese and Nepali officials on August 22, 2024.

As of July 2025, the Chinese technical team, comprising engineers from CCCC First Highway Consultants and Xi’an Fangzhou Engineering Consultants, has completed a field survey. The final design report is expected to be submitted by the end of 2025. No official construction start date has been confirmed.

The project is being implemented under a government-to-government (G2G) grant arrangement.

The implementing agencies on the Chinese side have not been formally announced, but Guangdong Construction Engineering Group, China Railway Group Limited (CREC), and Shanghai Construction Group previously participated in Phase 1. The Government of Nepal serves as the direct recipient and implementing agency.

The estimated project cost is approximately NPR 4 billion (~USD 30 million), according to a senior official at Nepal's Department of Roads. However, no official Chinese commitment amount has been disclosed as of September 2025.