The government has announced that the Nagdhunga Tunnel, Nepal’s first tunnel road, will be commercially operated from January 1, 2026, marking a historic milestone in the country’s transport infrastructure.
According to Keshav Sharma, Secretary at the Ministry of Physical Infrastructure and Transport, preparations are nearly complete for the launch. “Preparations have been made to operate the tunnel road from the New Year. The situation is almost like a decision,” Sharma said, adding that tenders from the private sector will soon be invited for tunnel operation.
The Department of Roads (DoR) confirmed that the project has achieved 94.5% physical progress and aims to complete all construction work by October 2025. The Cabinet has already endorsed the operating procedure, including toll fee provisions.
Toll Collection and Operation
Tolls will be collected electronically through an RFID-based system, where vehicle owners will attach a bank-linked tag to their windshields for direct payment. The ministry is preparing to procure service providers for tunnel operation, management, and maintenance, with the Ministry of Finance approving the necessary budget.
According to the government directive, toll fees will range from Rs 50 to Rs 500, depending on the vehicle type:
- Small vehicles: Rs 50
- Buses: Rs 200
- Heavy trucks (12–14 wheels): Up to Rs 500
Motorcycles and vehicles carrying flammable fuels (petrol, diesel) will be prohibited from entering the tunnel.
Infrastructure and Impact
The tunnel will significantly reduce traffic congestion at the traditional Thankot/Nagdhunga bottleneck, cutting travel time from hours to just 30 minutes. The route distance will shrink from 7.5 km to 5 km, saving 2.5 km in travel.
Supporting infrastructure is nearly complete, including underpasses, box culverts, three bridges, and a one-way flyover for vehicles exiting Kathmandu.
First-of-its-kind Project in Nepal
Officials stated that drafting regulations for this project took time since it is Nepal’s first tunnel road, but the experience will make future projects easier.
The project, launched in 2019, has already undergone two deadline extensions. It is being built by Japanese contractor Hazama–Ando JV, with funding support from the Japan International Cooperation Agency (JICA), which provided concessional loans worth Rs 16 billion. The Government of Nepal has allocated Rs 9 billion for compensation and additional expenses.
Once operational, the tunnel will include oxygen supply, fire safety, communication systems, and electricity arrangements to ensure smooth operation and safety inside the passage.
