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Govt to accept loan for Nagdhunga-Naubise tunnel


Kathmandu, November 28, 2016: Sunday’s cabinet meeting has decided to accept a loan assistance from Japan International Cooperation Agency (JICA) to connect Naubise with Nagdhunga through a tunnel.

JICA is to provide approximately Rs 18 billion for the project which is  expected to ease road  traffic in and out of the capital Valley. The project covers a 2.5 km tunnel and an additional 7 km of road. “The proposal is for about Rs 18 billion but the exact cost is yet to be worked out as the detailed engineering is still underway,” said Baikuntha Aryal, joint secretary at the Ministry of Finance.

The Department of Roads is the implementing agency for the project and it will be the first tunnel road project here. The government aims to complete the project by 2022.

Earlier, JICA had carried out a feasibility study for the tunnel and an environment impact assessment has already been completed.