The long-running dispute over the starting point of the Kathmandu-Terai/Madhesh Fast Track (Kathmandu-Terai Expressway) has again come to the forefront, raising new concerns about the timely completion of the national pride project.
On Wednesday, the Indigenous Nationalities Commission formally urged Prime Minister KP Sharma Oli to shift the expressway’s zero point from Phudol in Khokana to Dukuchhap in Godavari Municipality–8.
The state-run national news agency RSS reported that the Commission Chair Ram Bahadur Thapa Magar presented a study report to the Prime Minister during a meeting at Singha Durbar, arguing that the Khokana alignment would displace indigenous Newar communities and threaten their religious and cultural heritage.
The Commission’s report underscored that the current alignment violates the human rights of local residents and recommended that the government seek prior informed consent from affected communities before pursuing major development works in heritage areas like Khokana, RSS added.
Read also: Resolving Khokana Dispute Must for Timely Completion of Kathmandu-Terai Expressway: Army
Khokana Impasse Delays Package No 11
The dispute over Khokana, part of Package No 11 of the 70.97-kilometer expressway, has emerged as the project’s most intractable hurdle. The Nepali Army, which is overseeing construction, acknowledged that it has been unable to advance contract and procurement processes in this section due to the unresolved land acquisition dispute.
Despite a government committee led by the Defence Minister working to broker a solution, no agreement has been reached with local residents. As a result, Package No. 11 remains on hold, with no contracts awarded.
Rising Concerns Over Deadline and Costs
As of May 2025, only 39.34 percent of the expressway’s physical work had been completed, while 73 percent of the allocated project time already passed. The Cabinet last extended the project deadline to mid-April 2027, but with just 1 year and ten months remaining, doubts are mounting over whether the project can be finished on time.
Initially launched in Fiscal Year 2016/17 with an original four-year target, the project timeline has already been extended multiple times. The Army now faces the daunting task of completing more than 60 percent of the work in less than two years.
According to the latest reports, financial progress stands at 41.06 percent, with Rs 67.10 billion already spent. Of this, Rs 58.32 billion has been spent on construction, Rs 2.07 billion on compensation and reimbursements, and Rs 2.87 billion on consultancy services, according to the 62nd annual report of the Auditor General.
The report cautioned that further delays—especially in resolving the Khokana dispute—would inflate costs, particularly for consultancy services, which are billed on a time-based contract. The Auditor General also recommended swift acquisition of the remaining 301 ropanis of land.
Read also: Kathmandu-Terai Expressway Lags Behind Schedule with Just 39% Work Completed
Progress: Tunnels, Bridges Advancing Slowly
The expressway, which is designed to connect Kathmandu with Nijgadh in Bara district via Lalitpur and Makawanpur, is expected to become Nepal’s fastest transport corridor to the Madhesh. The four-lane highway will include 89 bridges (spanning 10.59 km) and seven tunnels (totaling 6.41 km).
Of the seven tunnels, two have been completed, and work is underway on two more. Design and preparatory work for the remaining three tunnels has begun, according to Project Chief Kamal Bikram Shah.
Of the 13 construction packages, work is underway on Packages No. 1 through No. 10, while Package No. 11 remains stalled due to the Khokana impasse.
In addition, the project's scope and cost have been revised. The total length has been shortened from 72.52 km to 70.97 km, and the estimated budget has been reduced to Rs 201.19 billion from Rs 213.95 billion.
