Kathmandu: Nepal’s main arterial roadway, the East–West Highway (Mahendra Highway) stretching from Mechi in the east to Mahakali in the west is being upgraded to meet Asian Highway standards, with construction progressing rapidly in six major sections.

The project falls under the South Asia Subregional Economic Cooperation (SASEC) program and is being implemented with loans and grants from various donor agencies, according to the Ministry of Physical Infrastructure and Transport.

The East–West Highway is currently being expanded across six sections, with the Kamala–Dhalkebar–Pathlaiya and Butwal–Gorusinge–Chanauta stretches funded through World Bank concessional loans; the Kakarbhitta–Itahari, Kanchanpur–Kamala, and Narayangadh–Butwal sections supported by the Asian Development Bank (ADB); and the Kapilvastu–Dang/Dhankhola–Shivkhola section developed under the Millennium Challenge Corporation (MCC) project.

Although tender processes began in 2018 (2075 BS), only the MCC-supported section has reached substantial progress, while other packages are still under construction.

Upon completion, the upgraded East–West Highway is expected to improve intercity transport across the Terai–Madhesh region, reduce travel time and transport costs, and benefit more than half of Nepal’s population directly. The expansion is also anticipated to enhance regional trade connectivity and economic integration with South Asian economies.