KATHMANDU: A Nepal-China joint venture has been selected to operate the Nagdhunga-Sisnekhola Tunnel for five years. The contract has been awarded to Chongqing Yusin Road and Bridge Development Company and Nepal’s ART Construction after quoting the lowest bid of Rs. 110.40 million.
The selection followed an international tender process with 10 bidders. As per procurement rules, the lowest bidder was chosen. A letter of intent has already been issued, with a short window for objections before the final agreement is signed.
Officials said the contract will be finalized within around two weeks. The tunnel is expected to open to the public by the last week of May after operational preparations are completed.
The operator will deploy around 150 personnel, including technical and security staff. Some foreign experts will also be involved. The company will handle tunnel management, traffic control, emergency response, maintenance, and toll collection.
All toll revenue must be deposited into the government account under the Road Board Nepal. The tunnel will operate 24 hours throughout the year, including its 2.8 km approach roads linking Kathmandu and Dhading.
The project is nearing completion, with overall progress at about 98 percent. Remaining works include slope stabilization on the Dhading side and final touches on toll infrastructure. Construction delays were mainly caused by landslides, COVID-19 disruptions, and technical challenges.
The tunnel project includes a 2,688-meter main tunnel and a 2,557-meter emergency tunnel. The two are connected by multiple cross passages for safety and evacuation.
The government has fixed toll rates for the tunnel. Cars and vans will pay Rs 65 to enter Kathmandu and Rs 60 to exit. Minibuses and mini trucks will be charged Rs 115 for entry and Rs 80 for exit. Buses and trucks will pay Rs 260 to enter and Rs 200 to exit, while heavy vehicles will be charged Rs 600 and Rs 250 respectively.
Oversized vehicles beyond set limits will not be allowed. Pedestrians, two-wheelers, and non-motorized vehicles are also banned. Vehicles carrying flammable materials are restricted.
The project is being built at a total cost of Rs 22 billion. Of this, Rs 16 billion is financed through a concessional loan from Japan, while the remaining Rs 6 billion is funded by the government.
Construction began in October 2019 with Japan’s Hazama Ando Corporation as the main contractor. Multiple deadline extensions delayed completion, but the project is now in its final stage before operation.
