Government Publishes Toll Rates for Nagdhunga Tunnel

The government has published toll rates for vehicles using the Nagdhunga Tunnel, as the long-awaited project project gears up for operation.

According to the state-run news agency RSS, the Ministry of Physical Infrastructure and Transport issued a notice in the Nepal Gazette on Thursday, stating that the rates were set based on a Cabinet decision taken on August 11 last year under Section 6(1) of the Road Board Act, 2058 BS.

As per the rates, cars, vans, pickup trucks, microbuses and other light vehicles will pay Rs 65 to enter Kathmandu and Rs 60 while exiting. Mini-buses, mini-trucks and mini-tippers will be charged Rs 115 for entry and Rs 80 for exit.

Similarly, buses and single rear-axle trucks will pay Rs 260 to enter and Rs 200 to exit Kathmandu. The toll for multi-axle trucks, heavy vehicles and equipment has been fixed at Rs 600 for entry and Rs 250 for exit. Two-wheelers will not be allowed to use the tunnel.

The 2.7-kilometre tunnel is expected to reduce travel time along the Nagdhunga section from 30–45 minutes to around seven minutes, easing congestion at the western entry point to Kathmandu. Officials say it will also help lower fuel consumption, vehicle operating costs and emissions.

The project is now in its final phase, with the government recently awarding the operation and maintenance contract to the Yuxin–A.R.T Joint Venture. According to the Department of Roads, the private operator was selected through a competitive bidding process.

Although the tunnel was earlier expected to come into operation by last Dashain, delays in selecting an operator pushed back the timeline. Project officials now say trial operations are likely to begin in May.

The Nagdhunga Tunnel project was inaugurated on October 21, 2019, with an initial completion target of 42 months, or mid-April 2023. However, the deadline was extended multiple times due to various factors, including disruptions caused by the Covid-19 pandemic and protests by local residents.

The project is being built with financial support from the Japanese government, which has provided a concessional loan of Rs 16 billion out of the total estimated cost of Rs 22 billion. The Government of Nepal has contributed Rs 6 billion, mainly for land acquisition and compensation.