Tax exemption delay stalls Ring Road second-phase expansion

Key Points

• The second-phase expansion of the Ring Road in Kathmandu is stalled awaiting tax exemption approval from Nepal's Finance Ministry.
• The Chinese side has finalized the design and awaits policy level clearance to start construction.
• Tax exemption is needed for imported materials and equipment as the project is funded by Chinese aid and follows foreign aid tax exemption rules.
• The project includes a concrete bridge, pedestrian overpasses, and street lighting installation, but has seen delays despite a seven-year agreement.