Nepal tunnel project funding from Japan

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.