KATHMANDU: The government has secured a budget source of Rs 29.07 billion for the construction of the long-delayed Postal Highway, one of Nepal’s National Pride Projects.
The Ministry of Finance approved the budget for the current fiscal year to support the construction and blacktopping of 150.09 km of roads under seven different sections of the project. The allocated amount will also cover the construction of 69 bridges and 10 culverts.
According to Postal Highway Directorate Information Officer Bishnu Babu Pandey, preparations are underway to invite fresh tenders for all sections except those inside the Chitwan National Park area.
He said cost estimates are currently being updated based on the rise in construction material prices. The bidding process will begin after completing the estimate and documentation work.
“We have received source approval of Rs 29.07 billion for the construction of 69 bridges, 10 culverts, and 150 km of roads under the Postal Highway project. Estimate preparation is underway, and tenders will be called soon,” Pandey told MeroAuto.
The Directorate aims to complete the new tender process by mid-July 2026.
However, around 87 km of road passing through the Chitwan National Park area will only move forward after the Environmental Impact Assessment (EIA) and Detailed Project Report (DPR) are finalized.
75 percent physical progress completed
Construction of the Postal Highway began in fiscal year 2009/10 with the aim of improving road connectivity across 21 districts in the Terai-Madhesh region. Despite nearly 17 years since the project started, overall progress remains slow.
The total length of the Postal Highway project is 1,875 km. Of this, 975 km stretches east-west from Bhadrapur in Jhapa to Daiji in Kanchanpur. Another 882 km consists of 35 feeder roads connecting the Mahendra Highway to the Indian border.
According to Pandey, the project has achieved 74.9 percent physical progress so far, with total expenditure reaching Rs 72 billion.
Issues such as budget shortages, tree-cutting delays, site clearance problems, compensation disputes, contractor delays, and unresolved alignment decisions inside the national park have slowed the project.
Out of the total 1,875 km road network, 1,388 km has already been blacktopped. Construction work is currently ongoing on 250 km, while contracts for another 228 km are yet to be awarded.
Most ongoing contracts are expected to be completed within the next fiscal year. Newly awarded sections are targeted for completion within three years.
The project also includes the construction of 300 bridges. So far, 155 bridges have been completed, while 55 are under construction. Tenders for 69 additional bridges and 10 culverts outside the national park area are expected to be issued by mid-July 2026.
The project’s initial estimated cost was Rs 47.24 billion. Due to repeated delays, the total projected cost has now increased to Rs 101.63 billion. The final cost could rise further as the road design inside the national park area is still pending.
The revised completion target for the project is fiscal year 2026/27. However, officials say unresolved design and alignment issues could delay completion by at least another three years.
The Postal Highway project is currently being managed through six project offices. The road originally followed a route used during the Rana era for postal communication near the Indian border.
Initially, the project was planned to be built under an Indian grant assistance model. A 2008/09 agreement stated that Indian technical teams and contractors would carry out the construction work.
However, the model could not move forward, and later the Postal Highway Directorate was formed in fiscal year 2016/17 to continue the project along with feeder road expansion.
