Nepal tunnel project funding from Japan

Funding from the Japan International Cooperation Agency (JICA) will help with the construction of a new tunnel as well as road links in Nepal. The US$168.56 million funding package comes in the shape of a loan to Nepal’s Government. This will be used to pay for the construction of a 2.5km tunnel that will link Nagdhunga with Naubise. The loan will also pay for the 7km of road on either side of the tunnel. The project is due for completion in 2022 and will fall under the jurisdiction of the Department of Roa
December 1, 2016 Read time: 2 mins
Funding from the 2416 Japan International Cooperation Agency (JICA) will help with the construction of a new tunnel as well as road links in Nepal. The US$168.56 million funding package comes in the shape of a loan to Nepal’s Government. This will be used to pay for the construction of a 2.5km tunnel that will link Nagdhunga with Naubise. The loan will also pay for the 7km of road on either side of the tunnel. The project is due for completion in 2022 and will fall under the jurisdiction of the Department of Roads. Nepal’s Ministry of Finance has yet to announce the total cost of the project as well as from where it will secure the remaining funds required. In addition, neither the details of the interest rate nor the repayment timeline for the JICA loan have been announced at this stage.
Road Structures Finance & Funding

For more information on companies in this article

Related Content

  • Adelaide will benefit from a major road project
    February 15, 2023
    Adelaide will benefit from a major road project that will cut congestion.
    Read More
  • New international trade crossing linking Canada and US
    June 9, 2015
    The Detroit River is short, only 45km, and narrow in places, less than 1km. Around a quarter of the annual $658 billion Canada-US trade crosses over the river. That’s $160 billion worth of goods trucked each year between Detroit in the US state of Michigan and the Canadian city of Windsor in the province of Ontario - the Windsor-Detroit Corridor. There are several types of crossings, but the vast majority of commercial traffic must use the 2.3km Ambassador Bridge (see box). A new bridge was initially prop
    Read More
  • New Indonesia toll road seeks funding
    September 11, 2017
    Financing for a 240km toll road project that will connect Padang with Pekanbaru in Indonesia still needs to be finalised. A combination of loans from the Japan International Co-operation Agency (JICA) and PPP funding is expected to pay for the project. In all the project is expected to cost US$2.63 billion, with construction work intended to start in 2018.
    Read More
  • Nepal safety issues
    April 27, 2012
    The authorities in Nepal are establishing a road safety plan that is intended to reduce the country’s annual injury and fatality rates. Nepal’s Traffic Police Directorate recently announced figures showing that of the 8,503 accidents recorded in the 2010-2011 financial year, 4,914 occurred within the Kathmandu Valley. The police also said that factors causing accidents included the poor state of gravel and surfaced roads and inadequate traffic signs. Potholes are a major problem on Nepal’s road system accor
    Read More

Highlighted Content