KATHMANDU: The Government of Japan has agreed to provide an additional loan of 5.7 billion Japanese yen (approximately Rs 5.5 billion) to support the completion of the Nagdhunga Tunnel Project.
A memorandum of understanding regarding the additional financing was signed on Wednesday by Finance Secretary Ghanshyam Upadhyaya and Japanese Ambassador to Nepal Maeda Toru.
According to the Embassy of Japan in Nepal, the latest assistance brings Japan’s total loan support for the project to 22.336 billion Japanese yen.
Japan had previously extended a loan of 16.636 billion yen for the project in December 2016.
The additional funding became necessary due to rising construction costs caused by project delays, increased prices of construction materials and services, and various technical challenges encountered during implementation.
Construction of the Nagdhunga Tunnel Project began in 2019 and preparations are underway to bring the tunnel into operation from mid-July to mid-August this year.
The tunnel is expected to ease traffic congestion along the Kathmandu–Naubise section and improve connectivity between Kathmandu Valley and the rest of the country.
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