Nepali Vice President Paramananda Jha and visiting Chinese State Councilor Yang Jiechi on Tuesday jointly inaugurated a Ring Road Improvement Project here.

"Chinese support in Ring Road extension is a greater gift from China," Jha said while addressing the ceremony.

The Chinese government will provide 40 million US dollars as grant assistance for the first phase of widening the 9 km stretch of the Ring Road as pilot project.

Minister of Physical Infrastructure and Transport Chabbiraj Pant appreciated Chinese support in the development of transportation in Nepal.

"China has been supporting Nepal for the last 40 years in developing major roads and expansion of Ring Road will benefit Nepal," he said.

Yang expressed the desire of the Chinese government to work together with Nepal to enhance the Nepal-China comprehensive partnership of cooperation for mutual benefit.

The improvement of Ring Road is expected to ease traffic congestion in Nepal's capital city, which is home to 3.5 million people.

Thousands of commuters pass the 27 km Ring Road daily, which links the suburbs of Bhaktapur and Lalitpur districts adjoining Kathmandu valley.

The opening ceremony was followed by a reception hosted by Chinese Ambassador to Nepal Wu Chuntai in honor of the visiting Chinese delegation led by Yang, before their departure on Tuesday evening.

A technical team of Shanghai Construction Group Company Limited has concluded the survey work to expand the two 1 km long stretches at Balkhu-Kalanki and Ekantakuna-Koteshwore sections of Ring Road.

It will take 42 months to complete the construction, according to a design by the Third Railway Survey and Design Institute Group Corporation, a Chinese engineering consultant company.

The Nepali government has planned to improve 27 km of the Ring Road in three phases with the grant assistance from China, according to an agreement inked in February 2011 with the Chinese government.

Earlier on Tuesday, the Chinese delegation signed three agreements with Nepali counterparts including the Agreement on Economic and Technical Cooperation.