The cost of the Nagdhunga-Naubise tunnel road is projected to increase by Rs 4 billion due to unexpected geological challenges encountered during the excavation process and an extended construction timeline, leading to a projected increase based on 'price escalation.'

Nabin Man Shrestha, project manager of the tunnel construction project, said that the estimated cost of the project will increase by Rs 4 billion. Originally commenced at a cost of Rs 13.33 billion, the tunnel project has faced complications from challenging geological conditions, necessitating additional support structures in areas with weak rocks. Consequently, the project cost is now anticipated to surpass the initial estimate.

Where weak rocks are found, tunneling should be supported and additional structures should be built. In general, a weak rock is easy to break, but tunneling is easier with strong rocks. Initially, it was estimated that the project would cost Rs 16.5 billion and Rs 6.5 billion from the Japanese aid agency JICA. Out of the Rs 16.5 billion loan given by JICA, Rs 13.33 billion has been earmarked for tunnel construction and Rs 3.5 billion for consulting companies. About Rs 6 billion will be spent on the compensation.

According to the initial contract agreement, the project should have been completed within 30 months, i.e. by April 26, 2023. In the first phase, the duration of the project was extended by only 86 days. After the construction was not completed within the extended time, the deadline was again extended till April 25, 2024. But it seems that the construction of the project will not be completed even within the latest deadline. Project manager Shrestha said that he has sent a file to the Ministry of Physical Infrastructure and Transport regarding the construction of the project according to the cost of the initial phase.

"Since we have an old contract, we have been asserting the application of old rules," he said. “We believe that the Ministry of Finance will take necessary actions,” he added.

A 40-year loan has been taken from JICA for this project. Nepal has obligations to pay the principal amount of the project after 20 years with an interest rate of 0.01 percent. Shrestha said that many other equipment such as tunnel road ventilator, lighting and other equipment are yet to be installed. He mentioned, 'It will take approximately another year to complete all the work on the tunnel road, and after that, transportation can be possible.” According to the plan, 20 to 25 percent of the budget has been allocated for the tunnel for the acquisition of various equipment and technologies, leading to a slight decrease in overall physical progress.

200 meters left to break through the tunnel

Only a 200-meter section of rocks is left to break through the main tunnel of the tunnel road. Excavation of 2487.40 meters of the 2688 meters long tunnel has been completed. According to the monthly progress report of the tunnel road project released on Tuesday, it will take another year to complete the work. Project manager Shrestha claimed that the construction of the road would be completed within a year. He stated, “We are advancing the construction of the tunnel road, aiming to complete the work within a year. After excavating about two hundred meters and performing break-thru, we will work on the roadbed and other infrastructure of the tunnel road. The work on the roadbed-concrete lining of the tunnel toad has progressed to 1,385 meters, which is 51.50 percent completion."

The tunnel construction contract was awarded to the Japanese company Hazama Ando Corporation. Despite the foundation stone laid by former Prime Minister KP Sharma Oli on October 23, 2019, the excavation work only commenced almost 14 months later.