Nepal Opens First Modern Road Tunnel to Ease Kathmandu Traffic

Nepal inaugurated the Nagdhunga-Sisnekhola Tunnel on July 27, 2026, marking the completion of a seven-year project designed to alleviate congestion at the primary gateway to the Kathmandu Valley. The 2.688-kilometer facility connects Sisnekhola in Dhading with Totipakha in Kathmandu, bypassing winding mountain roads to reduce travel times from over an hour to between five and seven minutes.

Sunil Lamsal, Minister for Infrastructure Development, declared that the project signifies the start of a "tunnel era" for the country. Lamsal announced plans to build additional tunnels nationwide, noting that the Department of Roads is conducting feasibility studies for approximately two dozen more projects, while the Siddhababa Tunnel in Palpa District is already under construction.

The project cost approximately NPR 29 billion and was funded through concessional loans and Official Development Assistance from the Government of Japan via the Japan International Cooperation Agency. The facility includes a 2.56-kilometer emergency rescue tunnel and introduces Nepal's first electronic toll collection system using RFID N-Tags.

Initial access is restricted to emergency vehicles for a three-month testing phase before the tunnel gradually opens to public and private transport. The Yusin-ART Joint Venture will manage operations for five years, and the Hazama Ando Corporation will handle maintenance for the first year.