The Kathmandu-Terai/Madhesh Expressway project has reached 50% physical completion, with its deadline extended to March 2029, according to Ratopati. The government had previously decided on August 5 to extend the project’s deadline to April 3, 2030, Enewspolar reported on October 1, 2026. As of September 2026, the project was 50.02% complete, with an estimated cost of Rs 221.93 billion. Arjun Jang Thapa, a member of the National Planning Commission, estimated on September 24, 2026, that the project’s cost would increase by Rs 20 billion. The expressway is expected to significantly reduce travel time and transportation costs between Kathmandu and the Terai/Madhesh region.
Project timeline and challenges
The initial design for the Kathmandu-Terai Expressway was prepared in 2002 by Nepal Engineering Consultancy. The Nepali Army acquired land for the project between 2010 and 2012. In August 2017, the Cabinet transferred the management of the expressway from the Ministry of Physical Infrastructure and Transport to the Nepali Army. The Army initially aimed to complete the project by September 2021. In 2020, the Nepali Army selected six international firms to provide consulting services for the project, but the process was halted after selection criteria were found to have been leaked. Flooding in Makwanpur in 2024 also damaged some sections of the project.
Budget allocation and future outlook
The government has allocated Rs 17.64 billion for the Kathmandu-Terai Expressway in the upcoming fiscal year 2083/84. Officials from the Ministry of Physical Infrastructure Development are reportedly not confident that the remaining work can be completed within the extended timeframe. Unresolved issues such as land acquisition and traffic management in the Khokana section continue to delay the tender process for Package 11. Discussions are also underway regarding relocating the project’s starting point from Khokana to Chobhar.
