Japan has pledged 2.8 billion Japanese Yen (approximately NPR 2.63 billion or $18.5 million) in grant aid to reconstruct a section of Nepal’s BP Highway, devastated by floods seven months ago. The commitment follows a formal request from Nepal, with Japan’s embassy submitting a diplomatic note and draft exchange of notes to the Ministry of Finance, outlining the aid for rebuilding the flood-ravaged highway.

The funds, earmarked for a 3.2-kilometer stretch from Dalabesi to Barkhekhola, will be disbursed after Japan’s next fiscal budget cycle (April 2026 to March 2027), as confirmed by a Finance Ministry source. The Japan International Cooperation Agency (JICA) is currently conducting an ongoing assessment of the damaged highway, with its team still in the field.

The floods, triggered by heavy rainfall on October 11-12, 2024, washed away 8.5 kilometers of the highway, with a 12-kilometer section severely impacted. In response, then-Prime Minister KP Sharma Oli had urged Japanese Ambassador Yutaka Kikuta in late October 2024 to support reconstruction efforts.

Nepal’s Department of Roads has divided the reconstruction into four sections - three in Kavre and one in Sindhuli - with Japan assigned one section. The remaining three sections, covering Nepal-thok to Barkhekhola (5 km), Dalabesi to Charasyabesi (8.5 km), and Charasyabesi to Bhakundebesi (11 km), are under technical evaluation for contractor bids.

The government has allocated NPR 8.5 billion ($60 million) for these sections, with 11 companies bidding for the Nepal-thok and Dalabesi packages and eight for the Bhakundebesi package.

The reconstructed highway will feature a two-lane design, with contracts targeting completion within two years. Technical evaluations of bids are ongoing, and financial proposals will be opened soon.