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December 23: The government of Japan is providing Rs 15.28 billion loan assistant to the Nepal government for the construction of Thankot-Naubise tunnel road. Shanta Raj Subedi, Finance Secretary and Masashi Ogawa, Ambassador of Japan to Nepal signed the agreement paper regarding the matter on behalf of their respective governments in a program organised at the Ministry of Finance (MoF) on December 22.
Meanwhile, Baikuntha Aryal, Chief of International Economic Cooperation Coordination Division under the MoF and Jun Sakuma, chief representative of Japan International Cooperation Agency (JICA) signed the loan agreement paper on tunnel road construction.
The Thankot-Naubise tunnel road is the first tunnel road of Nepal and is targeted to finish by 2022. The government initiated the project in a bid to make transportation network more effective. It has allocated Rs 1.86 billion in the budget for the construction of the tunnel road.
The government made the loan agreement with Japan Government to manage the remaining expenses including technicians. The loan is repayable to Japan in 40 years period with 0.01 interest rate. According to the agreement, interest for first 10 years has been exempted.
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