Nagdhunga Tunnel, a long-awaited infrastructure project aimed at easing congestion near Thankot, is finally set to come into operation after six years—this time under the management of a Chinese company.
The Department of Roads Nepal has selected China-based Yuxin-ART JV to operate and manage the tunnel. The project itself was constructed with support from the Japan International Cooperation Agency. According to project officials, the company has agreed to pay the government Rs 1.10 billion over a five-year period.
Out of several international bidders—including six Indian firms and one Chinese company—the Chinese firm ultimately secured the contract. Commercial operations are expected to begin by mid-June, following a three-month trial phase.
Despite construction being largely completed nearly a year ago, the tunnel remained closed due to administrative hurdles and procedural delays. Officials also noted that Nepali law requires foreign operators to partner with a domestic company.
The project, overseen by the Ministry of Physical Infrastructure and Transport Nepal, had reached around 90 percent completion about 8–9 months ago. Designed to reduce travel distance from Balambu to Sisne Khola from 7.5 km to 5 km, the tunnel is expected to significantly cut travel time and ease traffic congestion.
Several proposed افتتاح dates—including Dashain, the English New Year, and the Nepali New Year 2083 BS (April 14, 2026)—were missed due to delays. Part of the holdup stemmed from JICA’s reservations about awarding the operation contract to a Chinese firm, particularly concerns regarding companies with international blacklisting issues.
The Department of Roads also faced repeated delays in selecting a service provider, extending tender deadlines multiple times from December 2025 into January 2026. Officials emphasized that the process adhered strictly to Nepal’s legal framework.
The Tunnel Operation and Management Procedure, approved in October 2025, outlines responsibilities for operation, maintenance, and safety. Authorities acknowledged that Nepal’s lack of prior experience in tunnel management contributed to the delays but expressed confidence that future projects will proceed more smoothly.
Initially, the Kathmandu Road Division considered operating the tunnel directly, but the requirement of around 120 permanent staff made the option impractical, leading to the outsourcing decision.
Once operational, the tunnel is expected to reduce travel delays significantly, cutting commute time to around 30 minutes. Proposed toll charges range from Rs 50 for small vehicles to Rs 500 for large trucks. Motorcycles and vehicles carrying flammable materials will not be allowed.
The operating company will also handle critical services within the tunnel, including ventilation, fire safety, security, communication systems, and electricity supply—marking a major step forward in Nepal’s infrastructure development.
