After 22 months of signing the contract, the construction of the Siddhababa tunnel connecting Butwal and Palpa has commenced. The 1.126 km long Siddhababa tunnel has been under excavation since last week.

Ram Pukar Jaiswal, head of planning for the Siddhababa Tunnel Project, said that the construction work of the tunnel connecting Butwal and Palpa has resumed since a week. "The excavation work of Siddhababa's tunnel from the side of the temple has been started since last week," he said.

The contract agreement for the tunnel was signed on March 9, 2022. According to the contract, the construction of this tunnel should be completed within five years. The contract for the construction of the tunnel was awarded to a Chinese company – China State Construction Engineering Corporation.

The company has adopted the Planning, Design, Engineering, Procurement, Construction, Commissioning and Operation and Maintenance model. This construction company was also given the responsibility of maintenance of the tunnel for five years after the completion of the construction.

The design completed by the builder is being reviewed by a Swiss consultant. The slab stabilizing work and sub-horizontal concrete slab design drawings of both the portals of Siddhababa Tunnel have been recommended by the Swiss consultant and approved by the Department of Roads (DoR). Overhanging rocks on the Siddhababa road section are being removed. The company aims to dig 400 meters of tunnels within this year.

China State Corporation was awarded the contract for the Siddhababa tunnel for Rs 7.35 billion.

A ministerial-level decision made by the then Finance Minister Yubaraj Khatiwada on November 16, 2020, secured a budget of Rs 10.15 billion for the construction of the Siddhababa Tunnel. The section along Siddhartha Highway from Upper Siddhababa Temple to the confluence has been highly susceptible to landslides. Tragically, dozens of lives are lost each year due to landslides in this area, both during the rainy season and winter. Geological and pre-feasibility studies were conducted in the region from Upper Siddhababa Temple to Ramapithecus Park with development assistance from the Swiss government. The Swiss Agency for Development and Cooperation conducted a pre-feasibility study of the Siddhababa tunnel. More than 450 lives have been lost due to landslides in this section.