Although the government has emphasized tunnel infrastructure as a priority in the upcoming fiscal year’s budget speech, actual allocations have decreased, limited to NPR 670 million. For the next fiscal year, NPR 200 crore is allocated for the Nagdhunga tunnel and NPR 50 crore for the Siddhababa tunnel. Over the past years, the budget provision for tunnel development in Nepal has been consistently declining.
May 11, Kathmandu – The government, in the budget speech for fiscal year 2083/84, announced high priority for tunnel infrastructure. The speech included plans from Tokha-Chahare to Thankot-Chitlang routes. However, the allocations show a decrease compared to the current fiscal year. In the current year, excluding Nagdhunga tunnel, NPR 688 million was allocated for other projects, whereas for the upcoming year, only NPR 670 million has been provisioned.
This year’s budget speech mentioned conducting a detailed feasibility study for the Tokha-Chahare tunnel route, a program that was also included in the current year. The allocation for this study was NPR 2.7 million this year, but for the next year it is reduced to NPR 1.148 million, indicating nominal budgeting that merely sustains the projects.
For the upcoming fiscal year, 12 projects related to tunnel development have been allocated budgets, down from 15 in the current year. The government has even reduced the number of projects. Budget allocation for tunnel development programs is NPR 37.7 million for the new year, compared to NPR 89.98 million this year.
Proposed feasibility studies for various tunnels have been allocated NPR 190,000 next year, compared to NPR 450,000 in the current year. Moreover, for the feasibility study of the tunnel from Bheri River in Surkhet to Danuwa Tal in Bardiya, NPR 560,000 has been allotted for the next fiscal year, down from NPR 1.35 million this year.
The Dolalghat-Charnawati tunnel will receive NPR 1.89 million next year, whereas this year it was allocated NPR 4.5 million. Similarly, the Khurkot-Chiyabari tunnel is allotted NPR 392,000, compared to NPR 900,000 previously. The Shivpur-Bhaluwang and Ranighat Bhurigau tunnels are budgeted NPR 392,000 each, down from NPR 900,000 in the current year.
The Siddhababa tunnel receives NPR 500 million in the upcoming year, slightly increased from NPR 485 million in the current year. The government declared in the budget speech its intention to complete and operationalize this project in the new fiscal year.
The Gwarko-Satdobato Ekantakata flyover is allocated NPR 124.8 million for the next year, compared to NPR 95.2 million this year. However, projects such as Dumkivas-Bardghat, Hemja-New Bridge, New Baneshwar underpass, and tunnel studies from Fuskhel Chorepatan to Syangja Gudikola are not included in the upcoming year’s allocations.
Currently, apart from Nagdhunga and Siddhababa tunnels, tunnels are being constructed on the Kathmandu-Tarai Madhesh Expressway, where the government has made a consolidated budget allocation. This project is under implementation by the Nepal Army. A total of NPR 1.764 billion has been allocated for roads, bridges, and tunnel construction on this expressway.
Budget Announcements for Tunnel Development
- Conduct detailed feasibility studies for the Tokha-Chahare tunnel.
- Study feasibility of the Marge tunnel from Mulsam in Jajarkot to Jumla Topla to improve life in Karnali.
- Feasibility studies for the Khurkot-Chiyabari, Thankot-Chitlang, Majhimtar-Shaktikhor, and Chisapani-Babai tunnel constructions.
Despite the government’s attractive presentation of tunnel projects in the budget speech, budget allocations suggest that these projects are not prioritized. The largest shares are reserved only for tunnel projects, such as Nagdhunga and Siddhababa, which are nearing completion. Consequently, this budget is unlikely to significantly facilitate immediate construction of new tunnels to ease transportation.
NPR 200 Cr Allocated for Nagdhunga Tunnel
The government has allocated NPR 200 crore for the Nagdhunga tunnel in the upcoming fiscal year, down slightly from NPR 210 crore in the current year. This budget will cover tunnel construction, road building, land acquisition, and other administrative expenses. Additionally, the budget includes provisions for maintenance, operation, and management of the tunnel.
Steady Decline in Tunnel Budget Allocations
While tunnel development is claimed as a priority, budget allocations have steadily decreased. In fiscal year 2080/81, NPR 194 crore was allocated for 23 tunnel projects. In 2081/82, the budget dropped to NPR 81.14 crore. This year it further declined to NPR 68.8 crore and is now limited to NPR 67 crore for the upcoming year.
Author: Achyut Puri
Achyut Puri is an economic journalist actively producing written materials on tourism and civil aviation topics.
