The government of Nepal has canceled the procurement process for the second phase of the Kathmandu Tarai Expressway. The Nepal army was advised to scrap the bidding process after receiving only one bid for the concession which involved 72.5 km of expressway with 2.77 km of tunnels and several bridges. Nepal army shortlisted only one bidder out of 22 interested ones. Thus, the parliament of Nepal scrapped this process, as it became impossible to conduct competitive bidding for the project.

The concession includes 6.40 km of tunnels and 86 bridges, from which 16 are special bridges. The first phase of the project was awarded to China State Construction Engineering Corporation, which was not qualified for the second phase. The total investment value of the project is US$ 1.76 billion.