Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Energy, Water Resources and Irrigation Minister and Minister for Physical Infrastructure and Transport Kulman Ghising has requested the Asian Development Bank (ADB) to assist in conducting a feasibility study for operating electric trolley buses along Kathmandu’s Ring Road and major expanding highways.
The request was made during a meeting held on Wednesday with Arnaud Cauchois, ADB’s Country Director for Nepal, and his team. The delegation was briefed by Minister Ghising on Nepal’s plans for sustainable urban electric mobility.
Proposal to Use One Lane for Trolley Operations
Minister Ghising said the government is upgrading several major road sections and proposed that one dedicated lane could be allocated for trolley buses.
He identified the following corridors as potential routes:
Kathmandu Ring Road
Kathmandu–Dhulikhel
Pokhara–Mugling
Butwal–Narayanghat
Butwal–Bhairahawa
Biratnagar–Dharan
Ghising told the ADB delegation that expanding the use of electric public transport would significantly increase domestic consumption of Nepal’s surplus electricity.
“We must bring electric transport like trolley buses into operation to use the electricity we are producing. We request ADB’s support for a detailed feasibility study,” he said.
Historic Trolley System Closed in 2066
Nepal previously operated a trolley bus system from Tripureshwor to Surya Binayak under Chinese assistance beginning in 2033. The service was discontinued entirely in 2066 after years of declining operation.
ADB-Backed Sustainable Urban Electric Mobility Project Underway
ADB is currently supporting a Sustainable Urban Electric Mobility Project to improve public transport in Kathmandu Valley, Pokhara Metropolitan City, and the Lumbini–Butwal–Siddharthanagar corridor.
Under the project:
250 electric public vehicles will be introduced
Charging stations, maintenance facilities, and operational infrastructure will be built
Cycle lanes and non-motorized access to bus stops will be developed
The project concept paper has already been approved, and feasibility studies are underway. Implementation will be carried out through local governments with financing mobilized via the Town Development Fund and the Infrastructure Development Bank. In Pokhara, the establishment of a Public Transport Authority has been proposed to oversee implementation at the provincial level.
Project Cost Estimated at USD 160 Million
The project is estimated to cost USD 160 million (approximately NPR 22.56 billion). Of this:
USD 100 million will be ADB’s concessional loan
USD 40 million will be ADB’s zero-interest credit
The remaining amount will be financed by the Government of Nepal
Officials said the project aims to modernize Nepal’s urban public transport system and accelerate the country’s transition toward clean mobility.
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