The Kathmandu-Terai Expressway Project has achieved only 39.34 percent completion of physical work, even though over 73 percent of the project’s allocated time has already elapsed. With just 1 year and 9 months left before the current deadline of mid-April 2027 expires, doubts are growing about the project being completed on time.

The Cabinet meeting on April 18, 2023, extended the deadline for the expressway's completion to mid-April 2027. Originally, the construction began in Fiscal Year 2016/17, and the government handed over the responsibility for construction management to the Nepali Army in April–May 2017. The project was initially expected to be completed within four years, but the timeline has since been extended multiple times.

The Nepali Army, which is overseeing the construction, now faces the challenge of completing over 60 percent of the work in under two years. As of mid-April 2025, the financial progress stands at 41.06 percent.

Army spokesperson Brigadier General Gaurav Kumar KC claimed the project is moving ahead according to the revised schedule. However, he cautioned that ongoing disputes in Khokana—the designated starting point of the expressway—could delay the overall timeline. “Uninterrupted work is being done in other areas except Khokana,” KC said.

The government had earlier formed a committee under the leadership of the Defence Minister to resolve the long-standing land acquisition dispute in Khokana, but the issue remains unresolved. The army has managed 12 construction contracts so far, but it has been unable to award any contracts in the Khokana area due to resistance from the locals.

The project has also seen revisions to its Detailed Project Report (DPR), which slightly reduced both the overall cost and total distance. The expressway, initially planned to span 72.52 kilometers, has now been shortened to 70.97 kilometers. The revised estimated cost is Rs 201.19 billion, down from the earlier estimate of Rs 213.95 billion.

According to the 62nd annual report of the Auditor General, a total of Rs 67.10 billion has been spent on the project up to Fiscal Year 2023/24. Of this, Rs 58.32 billion went toward construction work, Rs 2.07 billion was spent on compensation and reimbursements, and Rs 2.87 billion was used for consultancy services.

The Auditor General warned that further delays would increase costs, especially for consultancy services, which are time-based. “Since the consultancy service agreement is made on a time-bound basis, the consultancy service period will also increase if the project period is extended and the cost will also increase,” the report noted.

The report also recommended resolving the Khokana dispute swiftly and completing the acquisition of 301 ropanis of land on time.