Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Preparations to open the long-awaited Nagdhunga Tunnel are gaining momentum as its physical construction nears completion. Project Chief Soujanya Nepal confirmed that ten companies, both domestic and foreign, have submitted bids to operate and manage the tunnel.
According to the project office, the selection process will likely involve a joint venture between one foreign and one Nepali company. The bids are currently under technical evaluation, and a two-stage assessment process is being followed to ensure transparency and proper selection. “We are evaluating technical proposals. Only the most competent companies will have their financial bids opened,” Nepal said.
The main construction work of the tunnel is reportedly 99 percent complete, with only minor auxiliary works remaining. This includes landslide prevention at the western portal (Dhading side) and construction of the toll plaza. The selected company will be responsible for security, traffic management, and technical maintenance within the tunnel.
When Will the Tunnel Open?
Project Chief Nepal estimates that full operation will take 2 to 4 more months, factoring in bid evaluation, contract finalization, staff training, and trial operations. Once finalized, the service provider will receive government training, after which the tunnel will open to the public.
The government will bear an annual operational cost of approximately Rs 30 crore. Collected toll revenue will be deposited into the Road Fund of Nepal and will not be directly handled by the service provider. Nepal clarified, “All toll collection goes to the Road Board account. The service provider is only reimbursed for actual operational costs.”
The tunnel will operate 24 hours a day, 365 days a year, requiring around 150 personnel, including five foreign experts and Nepali engineers, toll staff, drivers, firefighting and rescue teams, and other technical staff.
Construction of the Nagdhunga Tunnel began in Kartik 2076 BS by Japanese company Hazama Ando Corporation, with a total cost of approximately Rs 23 billion. Initially, Rs 17.15 billion was financed via a concessional loan from JICA, with an additional Rs 5.27 billion added in a second phase due to rising construction and consultancy costs.
The project aims for completion by Baisakh 12, 2083 BS, after which traffic congestion at Nagdhunga is expected to be significantly reduced, ensuring faster and safer travel.
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