KATHMANDU: Although the Prime Minister chairs the National Planning Commission to ensure close monitoring and timely implementation of strategic national pride projects, many of Nepal’s major highway projects remain unfinished even after more than a decade.
The government’s fiscal year 2025/26 progress report, made public on Thursday, reveals severe delays, escalating costs, and slow construction progress in six key highway projects categorized as national pride projects.
Mid-Hill Pushpalal Highway faces soaring costs
The Mid-Hill Pushpalal Highway, stretching 1,879 kilometers from Chiyobhanjyang in Panchthar to Jhulaghat in Baitadi, was envisioned as an alternative east-west route to the Mahendra Highway.
Construction began in fiscal year 2007/08 and the project was later listed as a national pride project in 2012/13. However, after 17 years, the highway remains incomplete.
According to the latest progress report, only 1,550.62 kilometers of the road have been blacktopped so far. The government allocated Rs 3.94 billion for the project this fiscal year, under which 40.62 kilometers of road and several bridges were constructed. A total of 114 bridges have been completed to date.
The project, originally estimated to cost Rs 33.36 billion, is now projected to reach Rs 84.33 billion by the expected completion timeline of 2027/28.
Postal Highway still unfinished after 16 years
The Hulaki (Postal) Highway project, launched in 2009/10 to improve connectivity and economic activity in the Tarai-Madhes region, has also suffered prolonged delays.
The highway stretches from Bhadrapur in Jhapa to Daiji in Kanchanpur and is expected to benefit around 8 million people across 21 districts.
As of Chaitra 2082, only 1,388.7 kilometers of road, including 36.9 kilometers completed this year, have been blacktopped. The government had allocated Rs 3.56 billion for the project in the current fiscal year.
The project’s estimated cost has increased from Rs 47.24 billion to Rs 65.20 billion, while completion has been pushed to fiscal year 2026/27.
Kathmandu-Tarai Fast Track sees slow progress
The government had promised to complete the project by May 2027 and allocated Rs 24.49 billion this fiscal year. However, only around Rs 4.59 billion had been spent by the end of March.
The project is being implemented in 13 packages, but according to the Finance Ministry report, one package has yet to even enter the contract stage.
Of the seven tunnels planned in the project, tunnel breakthrough has been achieved in only four sections. Likewise, none of the planned 89 bridges have been fully completed so far.
The project, initially estimated at Rs 116 billion, is now projected to cost Rs 211.93 billion due to delays and revisions. Local obstruction in the Khokana area has further slowed progress and increased costs.
North-south corridors also plagued by delays
The Koshi, Kaligandaki, and Karnali corridors — designed to connect Nepal’s northern border with China and southern border with India — have also witnessed major delays despite being declared national pride projects.
For the Karnali Corridor, the government allocated Rs 1.27 billion this fiscal year for upgrading the Hilsa-Simikot and Khulalu-Piluchaur-Tumcha sections. However, progress has remained limited, with only a few kilometers blacktopped and some sections still under track opening works.
The Karnali Corridor’s estimated cost has increased from Rs 4.10 billion to Rs 6.66 billion.
Similarly, the Koshi Corridor and Kaligandaki Corridor received a combined allocation of Rs 2.33 billion this year.
The Koshi Corridor’s cost has risen from Rs 12.54 billion to Rs 16.82 billion due to delays since construction began in 2008/09.
Likewise, the Kaligandaki Corridor, launched in 2009/10, has seen its estimated cost rise from Rs 30 billion to Rs 35 billion.
Despite repeated promises and priority status, the government’s own reports indicate that most of Nepal’s national pride highway projects continue to face chronic delays, ballooning budgets, and implementation bottlenecks.
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