China and Nepal agreed to expand industrial cooperation by establishing the SEZ or friendship industrial parks. The first of its kind bilateral friendship industrial zone is se t to be established in Jhapa. It will include electric vehicles, textile, garments and food processing industries among others. It will be built on 2,100 bighas (337.17 hectares) of land at estimated cost of Rs 63 billion, the funds mainly coming from China. So far, total Rs 1.36 billion have been provided to locals for land compensation. On completion, industrial park in Jhapa would create over 4000 direct job opportunities for locals. started in 2021, the project is set to be completed in 6 phases.