On December 22, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Federal Democratic Republic of Nepal in Kathmandu, the capital city, to provide a Japanese ODA loan (to extend a loan assistance) of up to 16.636 billion yen to implement the Nagdhunga Tunnel Construction Project involving 5.05 km road from Baad Bhanjyang, Kathmandu to Sisnekhola, Dhading district and whose estimated Project Cost (Loan Amount) is 22,140 million yen.

This project will construct a tunnel under Nagdhunga Pass, which is located on the trunk road connecting Kathmandu, major cities and the Indian border, with the objective of making the transportation network more efficient. It’s the the first road tunnel in Nepal. The loan funds will be allocated to public works for the 2.45 km two lanes road tunnel, 2.20 km (Kathmandu side) and 0.40 km (Dhading Side) approach roads, 2 bridges and other construction and improvements, and to consulting services (including detailed design work, bidding assistance, construction supervision, and the strengthening of operation and management capacity).

This project is expected to reduce the time to clear Nagdhunga Pass to one-third the current time. Actually the 15 km steep and curving road through the Nagdhunga Pass has a 800 m-1000 m elevation with a grade exceeding 10 percent, causing chronic traffic congestion, and ensuring a smooth traffic flow across the pass, which is expected to see an annual growth rate in traffic volume of 6%. The release date for tender announcement of initial procurement package for international competitive bidding on project construction (Civil Works for Tunnel, Approach Roads, Bridges, Toll Facilities, Control Office, Disposal Area Development and Distribution Line) is planned on May 2018. Completion of project extimed before August 2022. Visit https://www.jica.go.jp/english/index.html. 52/16.