Government Prepares to Engage Foreign Company for Operation of Nagadhunga Tunnel

KATHMANDU, August 15: The Government of Nepal is considering to bring in a foreign company to manage the Nagadhunga Tunnel, as the country lacks experience and expertise in operating tunnels. The Department of Roads aims to complete the construction of this first-of-its-kind tunnel by October next year and is making necessary arrangements for its operation.

A project official noted that the tunnel's management will involve handling safety measures, traffic control, fire management, toll collection, and maintenance, tasks for which the Department of Roads currently lacks expertise. Therefore, an international bidding process will be initiated to select a qualified foreign company to handle both the operation and maintenance of the tunnel.

The Nagadhunga Tunnel is being constructed by the Japanese company Hazama Ando Corporation, with financial support from Japan through a concessional loan. The Department of Roads has stated that there will be no need to appoint a separate consultant for the operation and toll collection, as the current consulting firm overseeing the construction will provide recommendations on toll rates, maintenance, and other operational aspects.

Currently, the main tunnel has been excavated, and finishing work is underway. Senior Divisional Engineer Govinda Dumaru mentioned that the tunnel will feature a two-lane concrete road with appropriate safety features, including lighting and fire control systems. The toll rates and collection procedures are also being formulated.

The project, which began on October 21, 2019, with an initial 42-month completion deadline, faced delays due to the COVID-19 pandemic and local obstructions, extending the deadline to October 2025. The total cost of the project is Rs 22 billion, with Rs 16 billion funded through a loan from the Japan International Cooperation Agency (JICA) and Rs 6 billion contributed by the Government of Nepal. The loan repayment period has been set for 40 years, as per the agreement reached in 2016 between Nepal and JICA.