Kathmandu, March 30 -- A Chinese company has been awarded the contract to operate the Nagdhunga-Sisnekhola tunnel, despite initial reservations from the Japanese side.

Seven out of 10 bidders cleared the technical evaluation stage, and a joint venture between China's Yusin and Nepal's ART was selected through the financial evaluation. The final shortlist comprised six Chinese firms and an Indian company, all partnered with Nepali firms.

Saujanya Nepal, director of the Nagdhunga-Sisnekhola Tunnel Construction Project, said a notice has been issued announcing the firm that passed the financial evaluation, and a letter of intent was issued on Monday.

"This means the bidder that cleared the financial assessment is in the final stage of sel...