The government will commercially operate the Nagdhunga Tunnel from January 1, 2026.

According to Keshav Sharma, Secretary at the Ministry of Physical Infrastructure and Transport, the ministry has prepared to launch the tunnel road from the English New Year. “Preparations have been made to operate the tunnel road from the New Year. The situation is almost like a decision,” he said. Sharma added that the ministry is preparing to invite tenders from the private sector within a few days for the operation of the tunnel.

The Department of Roads (DoR) reported that the project has achieved 94.5 percent physical progress and aims to complete all work by October. The Cabinet meeting held on August 11 already endorsed the operating procedure, including provisions for toll fees to be paid by vehicles entering the tunnel.

The DoR will collect tolls electronically from vehicle owners who use the tunnel. For this, the department has implemented an RFID-based toll collection system and is currently installing the system.

Under this system, vehicle owners will attach a bank-linked tag to the front windshield of their vehicle and pay the toll directly through it.

The DoR confirmed that it is preparing to procure service providers for tunnel operation, management, and maintenance. The Ministry of Finance has already approved the necessary budget for hiring a tunnel operation and management service provider. The Cabinet has also endorsed the required procurement guidelines.

The DoR has already prepared a sample bidding document, which is currently under discussion at the Public Procurement Monitoring Office. It has also approved the required terms and conditions for cost estimation.

Once the tunnel is operational, vehicles entering or exiting Kathmandu will no longer face hours-long traffic congestion at Thankot/Nagdhunga. Vehicles traveling through the tunnel will be able to cover the distance in half an hour. The tunnel will shorten the route by 2.5 kilometers. Currently, the distance from Balambu to Sisnekhola is 7.5 kilometers. Once the tunnel opens, the distance will shrink to 5 kilometers.

According to the directive passed by the Cabinet, vehicles using the Nagdhunga–Sisneri Tunnel Road will pay between Rs 50 and Rs 500. A road department official stated that small four-wheelers and heavy vehicles with 12 to 14 wheels will pay the toll before entering the tunnel.

Motorcycles and vehicles carrying flammable fuels such as diesel and petrol will not be allowed to enter the tunnel. According to the official, small vehicles will pay Rs 50, buses Rs 200, and large trucks up to Rs 500.

Vehicles entering and exiting through the tunnel will pay different toll rates. The directive explains vehicle movement patterns in detail under different categories. After collecting tolls, the toll-collecting company/agency will provide oxygen, fire safety, communication, and other facilities inside the tunnel. The company/agency will also arrange electricity inside the tunnel.

An official at the ministry said Nepal took some time to draft laws because this tunnel is the country’s first such project. “We are learning from this experience. It will be easier for future projects,” the official added.

The tunnel project, which started in 2019, has already received two deadline extensions. Japanese contractor Hazama–Ando JV is constructing the tunnel. The Japan International Cooperation Agency (JICA) provided concessional loans of Rs 16 billion, while the Government of Nepal allocated an additional Rs 9 billion for compensation and other expenses.

According to the project office, underpasses, box culverts, and overpasses have already been completed. Three bridges leading to the tunnel have also been built. The flyover (overpass) work is nearly finished. The flyover is one-way; only vehicles exiting Kathmandu will use it. Vehicles entering Kathmandu will not be allowed to use the flyover.

By Bhuwan Sharma