03/06/2026
JICA Enhances Support for Nagdhunga Tunnel with Additional Loan of JPY 5.7 billion.
On June 3, 2026, JICA signed an additional ODA Loan of JPY 5.7 billion for the Nagdhunga Tunnel Construction Project, bringing total support to over JPY 22 billion. The project aims to improve connectivity between Kathmandu and key regions of Nepal by easing congestion at the Nagdhunga Pass.
Now in its final phase, the tunnel has achieved about 99% physical progress and is expected to open in July 2026. The 2.68 km tunnel will significantly transform regional travel and strengthen economic connectivity.
Beyond infrastructure, the project introduces advanced tunneling technology, supporting resilient and sustainable development.
Building on successful collaborations like the BP Highway and Kathmandu-Bhaktapur Road, the Nagdhunga Tunnel is set to become a landmark in Nepal’s modern infrastructure development , reflecting Japan’s continued commitment to Nepal’s infrastructure growth.