China’s main task will be to construct the integrated inspection building, accommodation building, cargo warehouse, parking lot and flood protection levee.

The northern neighbour will also supply some office equipment. The project will be spread over 6,900 square metres.

Finance Secretary Suman Prasad Sharma and Chinese Ambassador to Nepal Wu Chuntai signed a letter of exchange regarding the project at the Finance Ministry on Thursday.

Funding for the construction will come from China’s annual grant to Nepal.

The northern neighbour has recently boosted its annual aid to Nepal to RMB 800 million (Rs12.88 billion) from RMB 150 million (Rs 2.41 billion).

Meanwhile, China has agreed to provide technical assistance to the farm sector with the aim of supporting Nepal’s long-term agriculture development plan.

Chinese experts will carry out hybrid rice variety experimental research and demonstrate the products suitable for the types of soil found in Nepal, according to the ministry.

Speaking at the signing ceremony, Secretary Sharma said that both the projects would be implemented after holding consultation between the two governments.

“China’s support has significant importance in our infrastructure development, especially in roads, human resource, health, sports and hydro project,” he added.