Nagdhunga Tunnel completes, awaits operator selection

Construction of the Nagdhunga–Sisnekhola Tunnel, the country’s first road tunnel linking Kathmandu to Dhading along the Tribhuvan Highway, has reached about 98% physical progress. However, the facility is yet to open as the government works to finalise an operator and complete operational preparations.

In November 2025, the government invited international bids to select a company to operate and maintain the tunnel during its initial years of operation. Of the 10 companies that applied, mostly international firms with Nepali joint-venture partners, seven cleared the technical evaluation round. 

Of the seven companies, the one which clears the financial proposal evaluation round would be awarded the contract. The selected company will be responsible for 24-hour tunnel operation, including traffic monitoring, toll collection, maintenance and emergency response, for five years.

Preparations are also underway to train personnel who will manage the facility once it opens. Reportedly, 150 staff will undergo specialised training for roughly two months before the tunnel becomes operational.

The training is expected to focus on operating tunnel control systems, managing traffic inside the tunnel, and handling emergencies such as accidents, vehicle breakdowns or fires. Staff will also learn to operate ventilation systems, surveillance cameras, communication equipment and toll systems used in the tunnel.

During the training period, the tunnel is expected to run in test mode so personnel can gain practical operational experience before full public operation begins.

The total length of the main tunnel of the project is 2.68 km long, consisting of two lanes of 3.5m width, median width of 1.5m at the center, and 0.5m wide space on both sides for drainage facility, including a 2.5-kilometre emergency tunnel, along with approach roads and associated safety infrastructure. The tunnel was constructed by Hazama Ando Corporation with financing from the Japan International Cooperation Agency.

Construction of the project began in 2019 with a 42-months construction period. An agreement was signed between Nepal’s Department of Roads, and Hazama to complete the project by April 2023. However, it was extended to April 2024 due to the COVID-19 pandemic. Authorities now indicate that the tunnel could open around April 2026 if the operator selection process and staff training are completed as planned.

The project was built at a cost of NRs 22 billion, with NRs 16 billion provided by Japan as concessional loans and the remaining six billion rupees covered by the Government of Nepal.

The tunnels are equipped with 24-hour ventilation (Jet fan) and lighting system installation while the approach road will have a Michi-No-Eki near West Portal Site. 

Michi-No-Eki is a facility developed in Japan, literally meaning ‘road station’ provided on National Highways/arterial roads for the purpose to integrate parking areas, restrooms (toilets), information, and community facilities provided by local governments. The road station will span  across a 4,650 sq. m. area, and provide space for parking at least eight heavy vehicles and 25 light vehicles, fast food restaurants, shops and toilets.

The work on a subsequent flyover in Balambu, a part of the Nagdhunga Tunnel Construction Project, is also finished. The flyover connects the Nagdhunga-Sisnekhola tunnel with the Tribhuvan Highway, and will be operational once the entire project comes into operation. 

Some works, including slope stabilisation near the Sisnekhola portal and installation of safety systems and toll infrastructure, are still ongoing, according to reports.

Once operational, the tunnel is expected to reduce travel time across the Nagdhunga section from around 30–45 minutes to about seven minutes, easing congestion at one of the main road entry points to Kathmandu.

The tunnel is also expected to lower costs for passengers and cargo vehicles, reduce fuel consumption and vehicle maintenance expenses, and help decrease air pollution.