Delay in Syaphrubesi-Rasuwagadhi road upgrade adds to trade disruption

Summary

The upgrade of the Syaphrubesi-Rasuwagadhi road in Nepal, agreed upon with China in 2019, has been delayed due to multiple setbacks including natural disasters and COVID-19, prolonging trade disruption at the Rasuwagadhi border crossing which remains largely non-operational.

Key Points
  • The Syaphrubesi-Rasuwagadhi road upgrade agreement was signed in 2019 but construction delays have pushed the start to February 2026.
  • Floods and landslides in July damaged the road and destroyed a key bridge, halting traffic and border operations at Rasuwagadhi.
  • Chinese contractor Tianlu Company is set to undertake the Rs6.5 billion road upgrade project, crucial for trade and regional recovery.
  • The Rasuwagadhi border closure has stopped container imports, severely affecting trade and local livelihoods, with reopening expected by late December.
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