Nepal’s infrastructure landscape is rapidly transforming in 2025. Despite economic pressures and geographical challenges, the country is moving ahead with several large-scale construction projects that are set to improve connectivity, boost energy production, and enhance transportation facilities. Here’s a quick look at some of the most significant projects currently underway.
1. Nagdhunga Tunnel Road Project – Nepal’s First Road Tunnel
Located on the western edge of Kathmandu Valley, the Nagdhunga Tunnel Project is Nepal’s first-ever road tunnel, stretching 2.68 kilometers. Expected to ease traffic congestion at the valley’s entry point, this Japanese-funded project is scheduled to be completed by early 2026. Once finished, it will drastically reduce travel time and improve trade and tourism routes between Kathmandu and western Nepal.
2. Upper Tamakoshi Hydropower Project – Powering National Independence
Although officially inaugurated in 2021, the Upper Tamakoshi Hydropower Project continues to be a backbone of Nepal’s energy sector in 2025. With a capacity of 456 MW, it is the largest hydropower project built using domestic resources. It has played a key role in making Nepal a net electricity exporter to India during surplus seasons, helping reduce the trade deficit.
3. Gautam Buddha International Airport – Ready for Takeoff
Located in Bhairahawa, the Gautam Buddha International Airport is now operational, serving as Nepal’s second international gateway. Equipped with a 3,000-meter-long runway and modern navigation technology, the airport is expected to reduce traffic from Tribhuvan International Airport and promote tourism in Lumbini—the birthplace of Buddha. Airlines from South Asia and Southeast Asia are gradually adding routes here in 2025.
4. Kathmandu-Tarai/Madhesh Expressway (Fast Track) – National Pride Project
The Kathmandu-Tarai Fast Track, being constructed by the Nepal Army, is one of the most ambitious and strategic projects to date. Once completed, the 72.5 km expressway will link Kathmandu with Nijgadh in less than an hour, enhancing trade and mobility. Though it has faced some delays, recent progress shows promising signs of completion by 2027.
Conclusion: Building the Backbone of a New Nepal
These construction projects mark a significant step forward in Nepal’s journey toward economic development and modernization. While challenges like budget constraints, land acquisition, and political interference remain, the completion of these projects will benefit not just urban centers, but also rural communities waiting for better roads, electricity, and connectivity.
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