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Nagdhunga–Sisnekhola tunnel road operations delayed as service provider selection lingers
Construction is almost finished, but officials say it will remain closed until a service provider is selected to run and maintain it.Bimal Khatiwada
Construction of the Nagdhunga–Sisnekhola tunnel road is 98 percent complete, but the tunnel is not yet operational. Authorities said the opening date will be set only after a service provider is selected to manage the facility.
Currently, ten companies are participating in the tender process. The Nagdhunga Tunnel Construction Project said the technical evaluation of these companies is ongoing. The project had initially said the assessment would be completed by January 29, but it has not yet been finalised. Director Saujanya Nepal said the process is expected to conclude within the next week.
“At present, we do not know how many companies will be shortlisted. This will be clear only after the technical evaluation ends,” Nepal said. “Only then will we open the financial proposals and begin evaluating them.”
The project said a 15-day notice will be published listing the companies that pass the technical evaluation before the financial proposals are opened. “This is an international tender, so the notice is given for 15 days; otherwise, seven days would normally be sufficient,” he said. “The financial proposals will be opened on the 16th day after the notice, and evaluation will take only four to five days.”
Only companies that pass the technical evaluation will have their financial proposals considered. The project said the selected company will deploy staff to the field after signing the contract.
“Because there are many companies, the technical evaluation has taken some time,” Nepal said. The project first invited international tenders to select the service provider to operate the tunnel on November 2 last year. The original submission deadline was December 17, but was extended to December 31 following requests from international construction firms and Nepali contractors.
During this period, some contractors requested clarifications on provisions included in the project, prompting a further extension of the deadline to January 14. All ten foreign companies in the competition have Nepali joint venture partners.
“By the last week of March, the company selected to operate the tunnel will be finalised,” Nepal said. “After that, personnel training will be conducted. During training, the tunnel will operate in test mode so staff can learn to manage it.”
Two months have been allocated to train around 150 personnel.
“It depends on which service provider is chosen and how they plan to operate. Different types of work require different staff, and training is arranged accordingly,” Nepal said.
Although the Japanese government has said companies owned by the Chinese government or those blacklisted cannot be selected, most of the competing firms are Chinese. Six Chinese, three Indian, and one Turkish company are participating.
After the construction company completes its work, the tunnel will be handed over to the Department of Roads. As it is an international tender, foreign companies are required to have Nepali joint venture partners. This ensures Nepali technical staff gain experience, enabling them to operate the tunnel independently in the future.
The selected service provider will manage and operate the tunnel for five years. Responsibilities include maintenance, traffic management, emergency rescue, toll collection, and upkeep of the tunnel and the 2.8-kilometre access roads connecting Kathmandu and Dhading. The operator must run the tunnel 24 hours a day, 365 days a year. The government will cover operational costs, while the operator must deposit toll revenue daily into the Road Board Nepal account, which will monitor operations.
Currently, only the selection of the service provider, construction of the toll plaza, and landslide management on the Dhading side remain. The project said it plans to request an additional loan from the Japan International Cooperation Agency (JICA) due to insufficient funds for landslide management, consultancy services, and other construction needs.
The additional loan, which requires approval from the government of Nepal and JICA, has not yet been finalised. Around Rs5.5 billion is being requested. If approved, the total loan from Japan will reach Rs21.5 billion, with the government contributing Rs6 billion and Rs16 billion already provided as concessional loans.
Construction of the tunnel began on October 21, 2019. According to the schedule, work was to be completed within 42 months. The main tunnel is 2,688 metres long, while the emergency tunnel measures 2,557 metres. Construction is being carried out by Hazama Ando Corporation.




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