Chinese Government provides RMB 25.4 million grant for Kathmandu-Khasa Optical Fibre Cable Laying Project (Linked to Record ID#34388).

In 2007, the Chinese Government provided an RMB 25.4 million grant to the Government of Nepal for the Kathmandu-Khasa Optical Fibre Cable Laying Project.

This project, which is also known as the Optical Fibre Along the Araniko Highway Project, involved the installation of the 155 kilometers optical fiber from Kathmandu to Khasa along the Araniko Highway.

The network extends from Banepa [southeast of Kathmandu] to Khasa [border town in Tibet, 'Zhangmu' in Chinese (also from Tibetan as Dram or Zham, from Nepali as Khasa)] to create digital optical fibre network along the entire Araniko Highway.

On September 23, 2007, a project implementation contract was signed between China International Telecommunication Construction Corporation (CITCC or China Telecom) and Nepal Telecom (a state-owned telecommunications provider). Construction began on January 22, 2008. A formal project handover ceremony took place on August 29, 2008.

According to the Chinese Ministry of Finance Investment Guide 2018 (p.27), although the project finished construction in 2008, the communication carrier services on both side did not establish connection, and Nepal used the fibre network for domestic communication use.

In 2016, China extended its optical fibre network from Lhasa, Tibet to Nepal via Geelong (Keyrong)-Rasuwgadhi border point and handed it over in August that year.

In 2018, China Telecom and Nepal Telecom completed compatibility works and Nepal was officially connected to Internet via Chinese fibre networks.