Ten service providers have participated in the bidding process for the operation of the Nagdhunga-Sisnekhola tunnel. The Nagdhunga Tunnel Construction Project has stated that 10 companies competed when the bids were opened as per the deadline of December 30.

The technical aspects of the companies participating in the bid are currently being evaluated. The technical evaluation work will be completed by 15th Magh, said Soujanya Nepal, Director of the Nagdhunga Tunnel Construction Project. 

‘We will complete the technical evaluation work by 15th Magh and look at the financial aspects of the companies’ proposals,’ Nepal said. ‘We will complete the evaluation of the financial proposals by 15th Falgun and issue a notice of intent to the selected company for the contract.’ He said that the selected company will reach the field after signing the contract by the end of Falgun. 

‘After the selection of the service provider is completed, we will train the employees who will be deployed for tunnel operation through the concerned company,’ Nepal said. ‘Therefore, the project is preparing to operate the tunnel as a trial by Chaitra.’

The project had first invited bids on 16th Kartik to select a service provider through an international bid for the operation of the tunnel. Accordingly, the deadline for submitting bids was 2nd Pus. However, the deadline was extended for the first time to 16th Pus as per the demand of international construction companies and Nepali construction entrepreneurs. 

During this period, the construction business demanded clarification on some points of the project's provisions, so the time was extended to 30th December. Accordingly, the bidding has now been opened. The project has stated that all Nepali companies have JVs with 10 foreign companies included in the competition. 

Although Japan has taken a stand that companies owned by the Chinese government and included in the blacklist should not be selected, the largest number of companies in the competition for service providers are currently Chinese. According to a Road Department source, there are 6 Chinese, 3 Indian and one Turkish companies in the competition. During this period, the old construction company will hand over the completed tunnel to the Road Department. 'Initially, the service provider will have a three-month trial period,' he said. 

Since it is an international bid, there is a provision that a foreign company must enter into a joint venture with a Nepali company. According to Project Director Nepal, such a provision will prepare Nepali technicians to operate the tunnel and later it will be easier for Nepalis to operate the tunnel themselves. The service provider selected now will have to manage and operate the tunnel for five years.

The tunnel will have to be maintained for five years for maintenance, traffic management, emergency rescue, toll collection, maintenance of the entire tunnel and the 2.8-kilometer access road connecting Kathmandu and Dhading. The service provider will have to operate and manage the tunnel for 365 days a year. 150 people will be hired to operate the tunnel.

The cost of operation will be borne by the government, and the selected service provider will have to deposit the toll amount collected into the Road Board Nepal account every day. The Road Board Nepal will monitor this. The tunnel construction work is in the final stage, said Vijay Jaisi, Director General of the Road Department.

‘The work of selecting the service provider is underway,’ he said, ‘it will not take long to operate it.’ So far, 98 percent of the tunnel construction work has been completed. Now, only the work of selecting the service provider, construction of the toll plaza and landslide management towards Dhading remains. The project says that all the necessary structures inside the tunnel have been installed and constructed. 

The project has stated that it is preparing to take an additional loan from the Japanese government due to insufficient funds for landslide management, consulting services, etc. during the construction. ‘For some time now, there was a discussion between the Government of Nepal and the Japan International Cooperation Agency (JICA) about increasing the amount,’ Jaisi said. ‘Accordingly, about 5.5 billion rupees are going to be added, but an agreement has not been reached.’ 

The project says that this will be implemented after the Ministry of Finance and Japanese government officials sign the agreement. If the requested amount is added, the loan from Japan for tunnel construction will reach 21.5 billion rupees. Currently, Japan has a 16 billion concessional loan and the Nepalese government has invested 6 billion rupees.

The project had stated that the tunnel route would be operational from the beginning of the English New Year 2026. However, the operation time has been postponed due to failure to select a service provider. Currently, work is underway to construct a toll plaza and manage landslides towards Dhading. The construction company’s deadline has been extended to 12 Baisakh 2083 to prevent landslides. The project says that after the tunnel is operational, freight vehicles will save 30 to 35 minutes. 

The Nagdhunga-Sisnekhola Tunnel Transport Operation Directive, 2081, has also been issued on 25 Chaitra. According to the directive, after the tunnel is operational, pedestrians, two-wheelers, three-wheelers and non-motorized vehicles will not be allowed to enter the tunnel.