KATHMANDU, Jan. 5 (Xinhua) -- Nepalese southern city of Siddharthanagar and Chinese city Baoji have formally entered into the bond of sister cities, officials said here on Thursday.

Nepal's Siddharthanagar and Baoji city of northwest Shaanxi Province of China signed a sister city agreement in Bhairahawa city on Wednesday, some 280 kilometers south-west of Capital City Kathmandu.

"The sister city relationship is expected to strengthen mutual cooperation between the people of two countries and to consolidate friendly ties between the two cities," Chief Executive Officer of Siddharthanagar Municipality, Gopal Regmi, told Xinhua.

On the occasion, officials from Chinese city Baoji expressed confidence that the sister city relations will help further enhance industrial, social and cultural ties between the two countries.

The Chinese authorities expressed hope that the new bonding would pave the way for economic cooperation and development projects.

These two cities have agreed to make concerted efforts on the basis of equality and mutual benefit, with special focus in the areas of trade, culture, tourism among others.

Siddharthanagar is a historical city of Nepal, which comes from the Lord Gautam Buddha's given name "Siddhartha." Buddha was born near this ancient city.

These two cities established sister city relationship nearly two weeks after Nepali capital city Kathmandu and Chinese city Chengdu formally entered into the bond of sister cities on Dec. 23.