MCA-Nepal marks the start of upgradation of 40km Dhan Khola to Lamahi section of East-West Highway

Millennium Challenge Account Nepal (MCA-Nepal) today marked the commencement of the upgrading of the 40km Dhan Khola-Lamahi section of the East-West Highway. The road upgrading and maintenance works will, for the first time in Nepal, apply Full Depth Reclamation and Superpave as modern construction methods that offer important gains in quality, durability, and sustainability, according to MCA-Nepal.
By creating a stronger and longer-lasting road surface, reusing existing asphalt materials, and reducing environmental impacts, these approaches will help deliver a more reliable and cost-effective investment over the long term, a press note issued by the MCA-Nepal reads. "The project will also widen the road to 12 meters, with a 7-meter carriageway and 2.5-meter shoulders on both sides."
Addressing the event, the Chief Minister of Lumbini Province Chet Narayan Acharya, welcomed the use of modern technologies like FDR and Superpave, which will ensure better quality and longer-lasting roads. “This is a major step forward for our province and the people who rely on this highway every day," he said, adding that the upgrading of the road section will not only make travel safer and more reliable, but also open up new opportunities for local businesspeople, farmers, and entrepreneurs.
Similarly, Charge d'Affaires ai at the US Embassy Scott Urbon said, “Today’s launch of the Dhan Khola-Lamahi road upgrade marks an important milestone in the partnership between the United States and Nepal."
Through the MCC Nepal Compact, we are investing in high-quality, durable infrastructure that will lower transportation costs, improve safety, and connect communities to markets and opportunities, he said, further adding, “This project reflects our trust in Nepal’s future and our joint dedication to sustainable economic growth.”
Speaking at the event, Joint Secretary at the Ministry of Physical Infrastructure and Transportation and MCA-Nepal Board Member Sushil Babu Dhakal expressed, “As a Board member, I am pleased to highlight that MCA-Nepal’s investments are designed to complement the Government of Nepal’s plans and programs."
This collaboration reflects our shared commitment to building resilient infrastructure and expanding economic opportunities for our communities, he said, appreciating the efforts of all involved and look forward to the timely completion of this important project.
The MCC Deputy Resident Country Director Sanjay Poudyal, on the occasion, remarked that this milestone reflects MCC’s commitment to supporting Nepal in building resilient, cost-effective infrastructure using advanced technologies that ensure long-term performance.
"The commencement of works on the Dhan Khola-Lamahi section marks a significant step in implementing the Road Maintenance Project under the MCC Nepal Compact," said MCA-Nepal Executive Director Khadga Bahadur Bisht said. "MCA-Nepal remains committed to delivering this project efficiently, transparently, and to the highest quality standards," he said, adding, “I would also like to recognise the continued support from the Government, Millennium Challenge Corporation (MCC) and our key stakeholders, the Ministry of Physical Infrastructure and Transport, the Department of Roads, and the MCA-Nepal Board.”
The Road Maintenance Project is a key component of the MCC Nepal Compact, aimed at lowering transportation costs and improving road conditions across Nepal.

Nepal-China seal 11 billion second phase Ring Road expansion deal

The long-awaited second phase of Kathmandu Ring Road expansion is going to begin following a formal agreement signed today between the Government of Nepal and the People’s Republic of China.
Under the agreement, the Chinese government will provide a grant of approximately Rs 11 billion to upgrade the 8.2-kilometer road from Kalanki to Basundhara. The project includes widening the road to eight lanes and constructing several new bridges and pedestrian overpasses, according to a press note issued by the Ministry of Physical Infrastructure, Transport, and Urban Development.
The agreement was signed at the Ministry by Minister for Physical Infrastructure, Transport, and Urban Development Sunil Lamsal and Chinese Ambassador to Nepal Zhang Maoming. This phase follows the successful completion of the first section-the Koteshwar-Kalanki stretch-which was also built with Chinese assistance, it reads.
Speaking after the ceremony, Minister Lamsal emphasized a new 'zero-delay' approach to the construction. "The government has prioritised north-south connectivity as a national goal," he said, adding, "I am personally committed to ensuring that any administrative or technical hurdles arising during implementation are resolved within 24 hours to keep the project on track."
"The agreement related to assistance under the second phase of the Ring Road expansion has been completed today," he said, adding that the assistance agreement was signed with the Chinese Ambassador to Nepal Zhang Maoming. "On behalf of the government, a commitment has been expressed to resolve any problems arising during the project’s implementation within a day and to provide necessary facilitation."
Ambassador Maoming echoed the sentiment of cooperation, stating that the project serves as a cornerstone of bilateral infrastructure ties. He added that Chinese investors are increasingly looking at Nepal's energy and transport sectors, provided the 'suitable investment environment' continues to improve.
The Department of Roads confirmed that the expansion will address previous design concerns by incorporating modern medians, streetlights, and disabled-friendly overhead bridges. With the agreement signed, a Chinese technical team is expected to arrive at the site shortly, the press note adds.

Japan and UNDP partner to strengthen urban resilience to climate risks in Nepal

As part of UNDP’s global 'Climate Promise' initiative, the Government of Japan and the United Nations Development Programme (UNDP) launched a new $1.296 million 'Smart Buildings and Green Infrastructure for Improved Human Security and Sustainable Development' project to strengthen urban resilience to rising climate risks in Dhangadhi Sub-Metropolitan City (DSMC).
The launch event was led by Ambassador Extraordinary and Plenipotentiary of Japan to Nepal Toru Maeda and Resident Representative of UNDP in Nepal Kyoko Yokosuka.
Nepal is warming at nearly twice the global average, with urban areas facing increasing risks, according to a press note issued by UNDP. "In Dhangadhi, temperatures frequently exceed 40°C during recurrent heatwaves from May to August," it reads, adding that rapid and unplanned urbanisation, shrinking green spaces, and limited energy-efficient infrastructure are intensifying impacts on health, livelihoods, and essential services, particularly for low-income households and outdoor workers.
Speaking at the event, Ambassador Maeda reaffirmed Japan’s commitment to advancing climate resilience in Nepal, particularly for communities most vulnerable to climate risks. He expressed hope that the project would enhance urban resilience to extreme heat in Dhangadhi through integrated urban heat management solutions. He also noted that this year marks the 70th anniversary of diplomatic relations between Japan and Nepal, and emphasised that the project would further strengthen the long-standing partnership between the two countries.
"Through this partnership, UNDP is advancing practical solutions to urban heat in Dhangadhi, including thermal retrofitting of public buildings and community infrastructure, restoring urban wetlands, and promoting nature-based cooling solutions," Yokosuka said, adding, "These approaches are designed to be scaled and replicated across cities facing similar risks."
The project will demonstrate integrated climate solutions in Dhangadhi, combining infrastructure, planning, and local capacity to address rising heat risks. It is expected to directly benefit around 4,000 people-at least half of them women-while contributing to longer-term efforts to build more inclusive and climate-resilient cities in Nepal.