Kathmandu: Nepal’s first road tunnel, the Nagdhunga-Sisnekhola Tunnel, linking Kathmandu with Dhading, is set to be officially inaugurated on Monday, marking a major milestone in the country’s transport infrastructure.

Built at a total cost of approximately Rs 29 billion, the project is being completed nearly seven years after its foundation stone was laid by then Prime Minister KP Sharma Oli in October 2019. Although the original contract aimed to finish construction within 42 months, the project faced delays due to the COVID-19 pandemic, land acquisition and compensation disputes, and other implementation challenges.

The 2.68-kilometre main tunnel achieved breakthrough in 2024, about 10 months after the 2.557-kilometre emergency rescue tunnel was completed in August 2023. The rescue tunnel breakthrough was witnessed by senior Nepali officials, Japanese Ambassador Kikuta Yutaka, and representatives from the Japan International Cooperation Agency (JICA). The main tunnel breakthrough later took place in the presence of then Prime Minister Pushpa Kamal Dahal “Prachanda.”

The project was financed through a Rs 16.5 billion concessional loan from the Japanese government and Rs 6 billion from the Government of Nepal. Rising construction costs led Japan to provide an additional Rs 5 billion in loan assistance. The tunnel was constructed by Japan’s Hazama Ando Corporation.

Although officially inaugurated on Monday, the tunnel will be opened to traffic in phases. Emergency service vehicles will be the first to use the tunnel, while access for private and public vehicles will be expanded gradually. Pedestrians, motorcycles, and vehicles transporting petrol, diesel, or other flammable materials will not be permitted inside the tunnel.

The tunnel will operate under a toll system. The government has fixed toll rates at Rs 65 for cars, Rs 60 for vans, Rs 80 for pickups and tippers, Rs 115 for minibuses, Rs 200 for trucks, Rs 260 for buses, and up to Rs 600 for heavy trucks, depending on vehicle category.

The Nagdhunga-Sisnekhola Tunnel is expected to significantly reduce travel time between Kathmandu and the western parts of the country while easing traffic congestion along the busy Nagdhunga highway corridor.