The 157-kilometer stretch, notorious for its winding paths and treacherous hills, is the final piece of a vital "economic triangle" between Muglin – Pokhara, Muglin – Butwal and Butwal – Pokhara. Once fully linked, this trilateral network is expected to supercharge Nepal’s economy by rapidly moving agricultural goods, facilitating smoother tourism transit between Pokhara and Lumbini, and securing safer passenger travel. However, the choice between speed and budget has sparked a serious debate among policymakers.
The Two Options on the Table
To tackle the difficult terrain, the government is weighing a budget-friendly renovation against a massive, high-tech overhaul:
Option 1: Widening and Upgrading the Existing Highway
- The Strategy: Expand the current Siddhartha Highway into a proper, dedicated two-lane road by cutting into hillsides and reinforcing existing infrastructure.
- The Price Tag: Rs. 35 Billion.
- The Verdict: Highly cost-effective and practical, though it leaves the route susceptible to the traditional winding geometry of the hills.
Option 2: Constructing a High-Speed Expressway (with Tunnels)
- The Strategy: Build a modernized expressway that cuts directly through the hills using advanced tunnel technology, drastically shortening travel time.
- The Price Tag: Rs. 97 Billion.
- The Verdict: Extremely costly. While it offers a futuristic, high-speed solution, the price tag is nearly triple that of the widening project.
The expansion is slated to be financed through loans from the Asian Infrastructure Investment Bank (AIIB). Nepal has already utilized a USD 2 million (approx. Rs. 300 million) grant for the initial feasibility studies and preliminary upgrades.
However, the massive price gap between the two options has made stakeholders hesitant about the expressway.
With the country already heavily reliant on foreign donor agencies, many financial experts and stakeholders argue that widening the existing highway at a lower cost (Rs. 35 billion) is far more practical than saddling the economy with a massive Rs. 97 billion loan for tunnels.
According to Finance Minister Dr. Swarnim Wagle, the Detailed Project Report (DPR) for the 157-km stretch is already complete. The timeline moving forward is aggressive:
- Fiscal Year 2083/84: Dedicated to finishing final studies, selecting the preferred option, and completing administrative preparations.
- Next Year (2084/85): Groundbreaking and formal construction will begin.
- Project Target: The government aims to have the entire highway fully completed within five years of launching construction.
