Nepal formally inaugurated its first-ever road tunnel on Monday, 27 July 2025, as Infrastructure Development Minister Sunil Lamsal opened the Nagdhunga-Sisneri Tunnel — a 2.68-kilometre stretch along the Prithvi Highway at the western gateway to the Kathmandu Valley. The milestone marks Nepal's entry into the era of tunnel infrastructure, with government officials and diplomats attending the ceremony.

What the Tunnel Changes

The new tunnel is set to cut travel time by 20 to 30 minutes for commuters entering Kathmandu from the west. Until now, vehicles were forced to navigate a slow, winding mountain road at Nagdhunga, making the approach to the capital both time-consuming and difficult. The tunnel bypasses that stretch entirely, offering a direct, faster route.

Built with concessional loan assistance from the Japanese government, the project reflects a decade-long infrastructure partnership between Nepal and Japan. Japanese Ambassador to Nepal Maeda Toru, speaking at the inauguration, highlighted the depth of local involvement: 'Nearly 98 per cent of the engineers, technicians and workers involved in the project were Nepali, whose commitment was indispensable to its successful completion,' he said.

Japan-Nepal Technical Partnership

Ambassador Maeda noted that Japanese experts had worked closely with Nepali engineers, transferring knowledge and strengthening safety and quality management practices. He also announced that the two countries would launch a new technical cooperation initiative to build Nepal's capacity in tunnel planning, construction, maintenance, and operation — signalling that this project is as much about skill transfer as it is about infrastructure.

'The experience gained through this tunnel will enable these engineers to play a leading role in Nepal's future infrastructure development,' Maeda added.

Phased Opening and Operation

Despite the formal inauguration, the tunnel will not be immediately open to all traffic. During the first 10 days, only emergency vehicles — including ambulances, fire engines, and security force vehicles — will be permitted to use it, according to the Nagdhunga Tunnel Project Office. A three-month testing phase will follow before the tunnel is opened to regular traffic of all vehicle types.

Operation and maintenance — covering traffic management, emergency response, and toll collection — has been awarded for the next five years to a joint venture between China's Yusin and Nepal's ART, selected through competitive bidding. The award of the contract to the Chinese-led joint venture reportedly drew reservations from the Japanese side, though the government proceeded given Nepal's lack of prior experience managing a toll road tunnel.

Construction Delays and Cost

Construction officially began on 21 October 2019, when then Prime Minister K P Sharma Oli laid the foundation stone. Originally slated for completion within 42 months, the project ran nearly seven years — delayed by the Covid-19 pandemic, land compensation disputes, and conflicts with local communities over drinking water and related issues.

The total project cost reached approximately 24 billion Nepali rupees, according to the project office.

What Comes Next

Minister Lamsal signalled that the Nagdhunga tunnel is only the beginning. 'We will build more tunnels like this throughout the country. We have learned many lessons during the construction of this project. We have now formally entered the tunnel era,' he told journalists after the inauguration.

The Siddhababa Tunnel in Palpa District in western Nepal is already under construction, and the Department of Roads is conducting feasibility studies for approximately two dozen additional road tunnel projects across the country. Nepal's tunnel ambitions, long constrained by terrain and financing, appear to be gaining serious momentum.