Contract/projects

Breakthrough in Siddhababa Tunnel Project in Nepal

Following breakthrough of its main tunnel, the Siddhababa Tunnel Project in Nepal reached a major landmark on 24 January 2025.

Being located along the Siddhartha Highway,this project with NPR7.34bn ($53m) value intends to enhance connectivity on the Butwal-Tansen road section.

With 1,126m length, this tunnel features double lanes, an 8.5m width, and sidewalks to facilitate pedestrian safety.

The responsibility of implementing the Siddhababa Tunnel project is up to the China State Construction Engineering Corporation, which concluded the NPR7.34bn contract in February 2022.

Speaking virtually at the event, Nepal’s Prime Minister K P Sharma Oli highlighted the significance of the tunnel project in offering relief to travellers who have long faced risks from landslide-related accidents.

He noted that the project would enhance travel safety, bolster social and economic connections, and support the exchange of goods and services.

Oli added: “The breakthrough of the tunnel is a moment of joy for the entire country. Nepal is no longer as remote as it once was. We need to make it even more accessible. The government is committed to rapid development and good governance. We will also seek support from others and build our country. The government’s focus will remain on initiatives that benefit the nation, and our efforts are directed towards this goal.”

The date of starting the tunnel’s excavation was December 2023, whereas 22 March 2027 is the scheduled date for completing the construction.

Additional infrastructure works include the construction of a rock shed, rockfall netting, and slope protection measures along the exterior of the tunnel.

Assigning a single contractor responsibility for all aspects of design, engineering, procurement, and construction, this project is being delivered under the engineering, procurement, and construction (EPC) model.

Once completed, the contractor is going to be responsible for the tunnel’s operation and maintenance for five years.

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