The Nepali government and China's Tibet Hongji Construction Industrial Group signed here Monday an agreement on implementation of the Chinese assisted project of Syafrubesi-Rasuwagadhi Highway in Nepal.

    General Manager of the Group Yu Minggang and Director General of Nepali Department of Road Tulsi Sitaula signed the contract.

    China is assisting Nepal on construction project of 16 km long road linking Syafrubesi-Rasuwagadhi Highway in central Nepal. The road being constructed under the agreement starts from some 100 meters away from the existing bridge across the China-Nepal border.

    The construction of the road is expected to begin in the first half of 2008 and the construction will last for 28 months, according to General Manger Yu of the Group.

    Prior to this, a memorandum of understanding (MoU) was signed between the governments of Nepal and China on May 14, 2001 on construction of the Highway.