Nepal’s plans to expand its road network through tunnels are facing a familiar obstacle: limited funding. Despite multiple feasibility studies completed across the country, most tunnel projects are unlikely to move forward in the coming fiscal year due to budget constraints.
The Department of Roads’ Quality, Research and Development Centre has been allocated a budget ceiling of Rs 430 million for the upcoming fiscal year 2082/83. With this reduced allocation, officials say priority will be given to ongoing projects rather than starting new ones. Among those continuing is the Siddhababa tunnel in Palpa, which remains under construction but is progressing slowly and is far from completion.
Attention is also being directed toward building an overpass at Ekantakuna, a major traffic bottleneck in Kathmandu Valley. While studies and detailed project reports for several other sites—including Satdobato and different highway tunnel routes—have already been completed, a lack of funding has kept them on hold.
Several ambitious tunnel proposals, such as those along the Narayangadh–Butwal road section and the Tokha–Chhahare route, have undergone preliminary or full feasibility assessments. However, officials say construction decisions will depend heavily on economic viability and traffic demand rather than political pressure, which previously drove many such proposals.
Authorities have also indicated a shift in approach. Instead of pursuing numerous projects simultaneously, the focus is now on selecting a few high-impact tunnels that can deliver clear economic benefits. Projects that reduce travel time, improve trade routes, or connect key regions are being prioritised.
For now, Nepal’s tunnel ambitions remain largely in the planning phase—mapped out in detail but waiting for the funds needed to bring them to life.