SATV, Kathmandu, Apr. 30 - The government has signed an agreement to begin the second phase of Ring Road expansion from Kalanki to Basundhara.

Minister for Physical Infrastructure and Transport Sunil Lamsal and Chinese Ambassador Zhang Maoming signed the deal on Wednesday.

The project will cover 8.2 km of road and bridges. China will provide a grant of about Rs 11 billion.

Minsiter Lamsal said the government will resolve implementation issues quickly and ensure smooth progress. He also called for more Chinese investment in infrastructure.

Maoming said Chinese investors are ready to invest if Nepal improves its investment climate.

The full second phase was planned for 11.6 km up to Maharajgunj. Work will now proceed only up to Basundhara due to delays and uncertainty on the Chinese side.

Nepal and China signed an MoU in 2018 for the Kalanki to Maharajgunj section, with a two year completion target. Work has not started in eight years.

The first phase from Koteshwor to Kalanki, 10.39 km, was expanded to eight lanes with Chinese support and handed over in 2019.

The 27.2 km Ring Road was originally built in 1977 with Chinese assistance.