World Bank approves USD 275 million for Butwal-Chanauta road expansion

The project will upgrade 69 km two-lane section of Butwal—Gorusinghe—Chanauta road along the East-West Highway to a climate-resilient four-lane highway, with a focus on ensuring better road safety.

NL Today

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Kathmandu: The World Bank has approved USD 275 million as part of the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) project.

The project will upgrade 69 km two-lane section of Butwal—Gorusinghe—Chanauta road along the East-West Highway to a climate-resilient four-lane highway, with a focus on ensuring better road safety.

This is expected to reduce travel time by 30 percent, thus providing better access to India’s western seaports. The project will construct at least three market areas along the highway with dedicated areas for women entrepreneurs and traders to ensure that women can benefit from the enhanced economic opportunities, the World Bank said in a press statement.

The market areas will be equipped with separate toilets for women, free Wi-Fi, and digital bulletin boards with timely trade and market information. It will also support capacity building to enhance trade and customs processes at Birgunj and Bhairahawa border points. The project will also help advance Nepal’s preparedness and subsequent implementation of the Motor Vehicle Agreement (MVA).

“Nepal has large untapped potential for regional trade and exports. Low regional trade is often a result of the high cost of connectivity,” said Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka. “The project will help unlock Nepal’s economic potential through better connectivity and trade, both between the provinces as well as regionally among Nepal and other countries to support a green, resilient, and inclusive development.”

“It is highly critical to ensure trade growth, long-term sustainability and resilience of investments, while minimizing actual degradations on the environment, wildlife and ecosystems along with Nepal’s road network, which carries 90 percent of passengers and goods movement,” said Oceane Keou, World Bank Task Team Leader of the Nepal Project and co-Task Team Leader of the Program. “The project will adopt and implement an innovative green and resilient highway corridor concept in Nepal, based on a landscape-level development approach.”