Ten JV firms compete to operate Nepal’s first highway tunnel

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KATHMANDU: Ten joint venture (JV) companies have submitted bids to operate Nepal’s first road tunnel, the Nagdhunga-Sisnekhola Tunnel. The applications were submitted by the final deadline of January 14, following a global tender issued by the project.

According to the project office, the bidders include six Chinese, three Indian, and one Turkish company, all of which have partnered with Nepali firms to form joint ventures.

Project Engineer Sanjay Panthi said the selected service provider will be responsible for operating and maintaining the tunnel for five years.

Panthi said the technical evaluation of the applicants will begin next and is expected to take about one month. After that, the financial proposals of technically qualified companies will be opened. The bidder offering the lowest cost will be selected. The entire process is expected to take around two months.

The project issued the global tender on November 1, 2025, with the original application deadline set for December 17, 2025. However, the deadline was extended twice following requests from interested companies and amendments to the bid documents.

Although the construction of the tunnel has been completed and vehicles can physically pass through it, the tunnel is yet to become operational due to the lack of trained manpower and security arrangements.

Given the Road Department’s limited experience and workforce in tunnel operation, an international service provider is being selected through competitive bidding.

The tunnel will operate 24 hours a day and requires immediate emergency response capabilities in case of accidents, fires, or system failures. To manage this, the service provider will deploy staff in shifts and form a dedicated emergency response team. A total of 150 positions have been proposed.

The staffing plan includes a Head of Tunnel Operation and Maintenance, up to 64 security personnel, 54 toll collection staff, 14 traffic monitoring and control staff, and 16 personnel for civil and structural maintenance.

The main tunnel is 2.7 kilometers long, while the emergency tunnel measures 2.6 kilometers. The government has already fixed the road usage fee (toll) for vehicles using the Nagdhunga tunnel route.

The Nagdhunga-Sisnekhola Tunnel is Nepal’s first highway tunnel, built by Japanese firm Hazama Ando Corporation with funding from JICA and the Government of Nepal.

Ten JV firms compete to operate Nepal’s first highway tunnel

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