KATHMANDU: A loan agreement has been signed for the Koteshwor Chowk upgrade between the Government of Nepal and the Government of Japan.

The loan agreement has been signed in the presence of Finance Minister Rameshwor Khanal amid a program organized at the Finance Ministry.

Japan has provided a loan worth 34.59 billion Japanese yen (31.76 billion rupees) for the project.

The grace period for the project is 10 years, the payment period is 30 years, and the yearly rate is 0.2 per cent.

The underpass and flyover at Koteshwor and Jadibuti will be built under the project, with an aim of easing traffic running through three districts, Kathmandu, Lalitpur, and Bhaktapur, of the BP highway.

The project will be implemented by the Division of Roads under the Infrastructure and Transport Ministry.