Nepal: South Asia Subregional Economic Cooperation Mugling–Pokhara Highway Improvement Phase 1 Project

The project will develop the main road link from Pokhara to Kathmandu in Nepal, which feeds two SASEC corridors linking Kathmandu to Dhaka (Bangladesh) and Kolkata (India). The highway will be widened to four lanes to reduce travel times and lower transport costs. The project will increase access to domestic markets, jobs, and social services; give Nepal a wider gateway to international markets; and facilitate tourism to Pokhara. Design standards will feature enhanced pavement and drainage and an intelligent traffic system to improve sustainability and safety awareness.

PROJECT DETAILS

Commitment Date

Funding Type

Country

Sector

Status

Total Cost

10 Dec 2019

Loan

Nepal

Transport/Road

Ongoing

$254 million

KEY OUTPUTS

Road network upgraded and maintained

Awareness of communities and capacity of government staff on road safety, disaster risk reduction, and project implementation improved

FINANCING

$195 million (Asian Development Fund)

$59 million (Government of Nepal)