Wednesday, April 15, 2026 08:03 PM

Nagdhunga tunnel nears launch, with operation deal set this week

Kathmandu, April 15: Nepal’s first modern road tunnel at Nagdhunga is in the final phase of preparation, with authorities set to sign an operations agreement with a service provider later this week. Project Chief Saujanya Nepal said the selected company has been formally invited to complete documentation, and the process is expected to conclude within days.

Once the agreement is signed, the operator will deploy staff on-site and begin trial operations. The contract has been awarded to a joint venture between China’s Chongqing Yuxin Road and Bridge Development and Nepal’s ART Construction for a five-year term. The company secured the bid at Rs 1.10 billion, about 40 percent below the government’s cost estimate.

The Nagdhunga–Sisnekhola tunnel is expected to ease traffic congestion on the Kathmandu–Naubise stretch. Authorities have already fixed toll rates, which vary by vehicle type. Cars, vans, pickups, tractors, and microbuses will pay Rs 65 when entering Kathmandu and Rs 60 when exiting. Minibuses and medium trucks will be charged Rs 115 for entry and Rs 80 for exit. Larger buses and single-axle trucks will pay Rs 260 entering and Rs 200 exiting, while multi-axle and heavy vehicles face charges of Rs 600 and Rs 250, respectively.

Pedestrians, bicycles, motorcycles, and other non-motorized vehicles will not be allowed inside the tunnel. Vehicles carrying highly flammable or explosive materials, including fuel and gas, are also prohibited under the operational guidelines issued in April 2025.

Payment will rely on an electronic toll collection system designed to reduce delays. For the first six months, drivers can pay through cash, digital scanning, or RFID-based automated systems, according to the Road Board of Nepal.

Officials say the tunnel marks a major step in modernizing Nepal’s road infrastructure, with full operation expected soon after testing is completed.

People’s News Monitoring Service

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