Nepal Toll Roads Complete Guide: Nagdhunga Tunnel, Rates & Payment 2025
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Nepal Toll Roads Complete Guide
System: Limited toll system - First tunnel toll opening late 2025
Coverage: Nagdhunga Tunnel (under construction), future toll roads planned
Currency: Nepalese Rupee (NPR)
Technology: Electronic toll collection planned for tunnel
Operator: Road Board Nepal (RBN), Department of Roads
Do I Need to Pay Tolls in Nepal? 2025 Update
Currently, Nepal has no operational toll roads. The country's 80 national highways totaling 11,799 km and extensive road network remain toll-free for all vehicle types.
2025 Change: Nepal's first toll system will launch with the Nagdhunga Tunnel opening expected by late 2025. This 2.688 km tunnel will connect Kathmandu with western Nepal, introducing electronic toll collection to the country.
Current Reality: Nepal's road network, worth approximately NPR 90 billion (USD 900 million), operates on government funding and fuel levies managed by Roads Board Nepal established in 2002.
Nepal Toll Costs: What You'll Pay
Nepal's toll system will begin with the Nagdhunga Tunnel, with proposed rates approved by Road Board Nepal pending final Cabinet approval.
Nagdhunga Tunnel Toll Rates (Proposed 2025)
| Vehicle Type | Entering Kathmandu | Exiting Kathmandu | Status |
|---|---|---|---|
| Small Cars & Motorcycles | Higher rates proposed | Lower rates proposed | Pending Cabinet approval |
| Heavy Vehicles | Proportionally higher | Proportionally lower | Break-even model |
| Prohibited Vehicles | Two-wheelers, fuel tankers | Overloaded vehicles | Safety restrictions |
Rate Structure: Toll rates categorize vehicles into four groups with different fees for entering versus exiting Kathmandu, designed on a break-even operational cost model.
Current Road Network (Toll-Free)
National Highways: 80 national highways totaling 11,799 km completely toll-free
Total Network: 34,100 km of national roads including strategic roads
Road Condition: Only 19% of roads are all-weather roads, road density 34.41 per 100 sq km
How to Pay Nepal Tolls
Nepal's toll payment system will launch with the Nagdhunga Tunnel:
1. Electronic Toll Collection (Planned):
- Modern electronic toll system for tunnel operations
- Automatic vehicle detection and classification
- Digital payment processing capabilities
2. Toll Plaza Infrastructure:
- Toll booths on approach roads with service facilities
- Roadside rest areas for travelers
- Four-vehicle-category classification system
3. Current Funding Model:
- Roads funded through fuel levies and vehicle registration fees
- Direct road tolls not currently collected
- Public-private partnership model for infrastructure
Recent Changes (2025)
Nagdhunga Tunnel Progress:
- Final tunnel breakthrough completed April 2024
- 80.5% physical completion achieved with October 2025 target opening
- Trial operations expected by late 2025
Infrastructure Development:
- Narayanghat-Muglin road upgraded to Asian Highway Network standards
- 620.17 km added to National Highway System in 2022/23
- Advanced bioengineering and slope protection measures implemented
Toll Policy Development:
- Road Board Nepal inviting procurement for toll plaza management
- Tunnel Operation Directive 2025 being finalized
- Rates fixed for minimum two years after implementation
Regional Toll Information
Nagdhunga Tunnel - Nepal's First Toll Road:
- 2.688 km tunnel connecting Sisnekhola (Dhading) to Nagdhunga (Kathmandu)
- Two-lane tunnel with 9.5m width and 8.3m height
- NPR 22 billion project with Japan International Cooperation Agency funding
- Expected to save NPR 1.72 billion annually in fuel and tire costs
Major Highway Projects:
- Tribhuvan Highway - Main corridor connecting Kathmandu to Indian border
- Prithvi Highway - Primary route to Pokhara and western Nepal
- Mahendra Highway - East-west highway spanning the country
- Future toll roads being planned for major corridors
Planning Your Journey
Current Travel Costs:
- All national highways completely toll-free
- Fuel costs and vehicle taxes support road maintenance
- Travel time main constraint due to road conditions
Nagdhunga Tunnel Benefits:
- Avoid 19 hairpin bends and sharp curves on 8 km section
- Reduced travel time from 2 hours to 50 minutes for key routes
- Improved safety during monsoon season with landslide protection
Road Conditions:
- Significant traffic congestion and safety challenges in major cities
- Monsoon season poses risks from landslides and flooding
- Road improvements ongoing with World Bank and ADB support
Frequently Asked Questions
Are there any tolls in Nepal currently?
No, Nepal currently has no operational toll roads. All 80 national highways and the entire 34,100 km national road network are toll-free.
When will Nepal's first toll road open?
The Nagdhunga Tunnel, Nepal's first toll road, is expected to open by late 2025 with 80.5% physical completion achieved as of 2024.
What vehicles are allowed in the Nagdhunga Tunnel?
The tunnel prohibits two-wheelers, fuel tankers, and overloaded vehicles for safety reasons. Speed limit is capped at 60 km/h for all allowed vehicles.
How are Nepal's roads currently funded?
Road maintenance is funded through fuel levies, vehicle registration fees, and direct road user payments managed by Roads Board Nepal under a public-private partnership model.
Will more toll roads be built in Nepal?
Yes, the Nagdhunga Tunnel is expected to serve as a reference for future tunnel projects. Nepal plans to enter a "tunnel age" with more toll infrastructure planned for major corridors.
Nepal vs. Neighboring Countries
| Country | System Type | Typical Cost | Coverage |
|---|---|---|---|
| Nepal | No tolls (tunnel planned) | Free (tunnel TBD) | 11,799 km highways |
| India | Electronic FASTag | $0.02-0.05/km | Major highways |
| Bangladesh | Limited electronic | $0.50-2.00/trip | Major bridges/tunnels |
| Sri Lanka | Electronic + manual | $0.10-0.30/km | Expressways only |
Useful Links & Resources
Internal Navigation:
- India Toll Roads - Comprehensive information on neighboring India's toll system
- Bangladesh Toll Roads - Information on Bangladesh's toll infrastructure
- Sri Lanka Toll Roads - Details on Sri Lankan expressway tolls
Government Resources:
- Roads Board Nepal (RBN): Official road maintenance funding authority
- Department of Roads: National highway construction and maintenance
- Ministry of Physical Infrastructure and Transport: Policy and oversight
