Kathmandu, July 17:

The Government of Japan has decided to extend a grant assistance of Rs 1.77 billion for the Improvement of 9.1 km segment of Kathmandu-Bhaktapur Road project in 2008.

Japanese Ambassador Tatsuo Mizuno and Finance Secretary Rameshore Prasad Khanal today signed and exchanged notes on behalf of respective governments.

Vice-Minister for Foreign Affairs of Japan Osamu Uno, and Minister of Finance of the Government of Nepal Dr Ram Sharan Mahat were present on the occasion. The grant would be utilised to procure products, equipment and services necessary for the execution of the project to expand the two-lane road to a four-lane road.

Kathmandu-Bhaktapur road was designed to link the Kathmandu Valley with the Eastern Tarai via the Araniko Highway and the Sindhuli Road, which connects Dhulikhel-Sindhuli-Bardibas section of the East-West Highway, said a statement issued by the Japanese Embassy.

The road section would also improve the connection of the Kathmandu Valley with the north via the Araniko Highway, it added. Mizuno congratulated Nepalis for holding the CA polls.