Nagdhunga-Sisnekhola Tunnel Operation Delayed by Three Months Due to Landslide and Operator Selection

Kathmandu. The project has stated that the Nagdhunga-Sisnekhola Tunnel Road will take another three months to become fully operational. Currently, there is a landslide issue at the western portal (Dhading side) of the project, and the process for selecting the service provider is underway. The project claims that the work to manage the landslide has just begun and will take two to three months to complete.

According to Engineer Sanjay Panthi of the Nagdhunga Tunnel Construction Project, landslide control work is vigorously progressing at the Dhading side portal. "It will take about two to three months to complete this work and make the tunnel ready for operation," Panthi stated.

Although the initial target was to launch operations from January 1, 2026, the timeline has been extended due to issues in selecting the service provider and technical reasons, he mentioned. While the tunnel construction work was nearly finished by that period, operations could not commence because the western portal of the tunnel was at risk of landslides, requiring maintenance, and a service provider had not been selected. Currently, the tunnel project has achieved 98 percent physical progress.

Ten companies have applied to take responsibility for the operation and maintenance of the tunnel. According to Soujanya Nepal, the Project Chief, the technical proposals of these companies are currently being evaluated. "We are currently in the evaluation phase. We aim to finalize the technical proposals by the end of Magh," Chief Nepal said. He informed that only the economic proposals of technically qualified companies will be opened, followed by the final agreement.

• 10 Companies for Operation, Mostly Chinese

There was talk that the Japanese construction company that built this tunnel with loan assistance from the Government of Japan was lobbying the Nepal government to prevent Chinese companies from operating it. Meanwhile, most of the applicants are Chinese companies. It is widely discussed that Japan has been lobbying against selecting Chinese state-owned companies or those blacklisted by the World Bank and Asian Development Bank for the tunnel's operation.

According to Project Engineer Panthi, Chinese companies dominate the applicants. However, he clarified that the rumor about not awarding the contract to Chinese companies is baseless, stating, "We have no such provision; whoever proves to be the best in the evaluation will get the responsibility."

Applications have been submitted by 10 companies for the operation and maintenance of the Nagdhunga Tunnel. Among them, 6 Chinese, 3 Indian, and 1 Turkish company have submitted proposals for operation in a joint venture with Nepali companies.

The project first called for tenders on 2081 Kartik 16, giving a 45-day deadline. However, bidders demanded revisions to the provisions, citing a lack of clarity regarding the tunnel operation regulations. Consequently, the tender deadline was extended until Poush 30.

• These are the 10 Companies

Among the interested companies for the tunnel operation are many Chinese firms, including Segmental Infrastructure Development Limited and Swachhanda Nirman Sewa Pvt. Ltd. (Segmental–Swachhanda JV), Kasthamandap Construction Pvt. Ltd. and Gansu Hengtong Road & Bridge Engineering Co. Ltd. (Kasthamandap–Gansu Hengtong JV), Kumar Shrestha Nirman Sewa Pvt. Ltd., Altinok Consulting Engineering Inc., and Bhageshwor Construction Pvt. Ltd. (KSNS–Altinok–BCPL JV).

Others include Shaanxi Road & Bridge Group Corporation Limited and Bright Bull Nirman Sewa (SXRB–Bright Bull JV), Jiangxi Tianfeng Construction Group Co., Ltd. and Danfe Construction Company Pvt. Ltd. (JTCG–Danfe JV), Bawari Construction Pvt. Ltd. and TunnelTech Solutions Pvt. Ltd. (Bawari Construction–TunnelTech Solutions JV). Engineer Sanjay Panthi provided this information.

According to the criteria, the company awarded the contract for operating this tunnel must have at least 3 years of experience operating a tunnel of approximately 1600 meters in length.

Furthermore, since this is an international tender, it is stipulated that the selected foreign company must mandatorily form a joint venture with a Nepali company. The selected service provider will be responsible for the management and operation of the tunnel for five years. The responsibilities include tunnel maintenance, traffic management, emergency rescue, toll collection, and oversight of the tunnel access roads. It is stipulated that the tunnel must operate 24 hours a day.

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Nagdhunga Tunnel Operation Delayed by Another Three Months

• Annual Operating Cost NPR 30 Crore, 150 Staff Required

The project estimates the annual cost for operating the tunnel to be between NPR 25 to 30 crore. According to Project Chief Nepal, the government will pay this amount to the selected company.

Chief Nepal stated, "The toll tax collected from vehicles goes directly into the 'Road Board Nepal' account. The service provider cannot use that money. We will only pay them according to their costs."

Since the tunnel must operate 24 hours a day, 365 days a year, approximately 150 personnel will be required. According to the project, about 5 foreign experts with specialized experience in tunnel operation will be deployed, and the rest will be Nepali staff.

Engineer Panthi provided a detailed breakdown of the manpower, saying, "Besides foreign experts, there will be 10 to 12 engineers, toll collection staff, drivers, a fire-fighting team, a rescue team, and other technicians." It was stated that the annual operating cost will be provided by the government, and the management of manpower will be the responsibility of the respective service provider company as per the contract agreement.

This tunnel, being constructed by the Japanese construction company Hazama Ando Corporation since Kartik 2076 BS, has a cost of about NPR 23 billion. Initially, the Japan International Cooperation Agency (JICA) provided a concessional loan of NPR 17.15 billion for this project. Following increases in construction and consultation costs, an additional loan of NPR 5.27 billion was taken. The final deadline for the completion of this project is 2083 Baishakh 12.