Foreign financing to fund Nepalese tunnel

Foreign financing will help fund Nepal’s Kathmandu-Kulekhani-Hetaudi Tunnel Highway project. The 58km highway is expected to cost some US$375 million in all and Nepal Purbadhar Bikash Company (NPBCL) plans to raise some $273.5 million of this from foreign investors. This move comes after it NPBCL to secure funding from local investors for the project. Part of this new plan will include NPBCL lowering equity contribution from the general public and promoters to 20% from the previous 50%. NPBCL seeks to have the funds injected to its project by end of December 2016, the due date for the highway project. The route will feature three tunnels measuring 3.425km, 735m and 392m long. Once the route is complete it will reduce the journey time between capital Kathmandu and Balkhu from up to eight hours at present to just one hour. The new highway is expected to improve safety for vehicles and will be constructed to Asian Highway standards.