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In the vibrant Kathmandu Valley of the 1970s to 1990s, a silent, eco-friendly wonder cruised the streets, linking neighborhoods and simplifying daily travel for thousands. The electric trolley bus, a gift from the People’s Republic of China, was more than just a mode of transport—it was a symbol of modernity, environmental consciousness, and efficient public mobility. Operating on a 13-km route from Tripureswor in Kathmandu to Suryabinayak in Bhaktapur, these trolley buses offered a pollution-free alternative in a rapidly urbanizing valley. However, by the early 2000s, the system had faded into obscurity, a victim of mismanagement, political instability, and neglect. Today, as Kathmandu grapples with crippling traffic congestion and hazardous air pollution, the revival of the trolley bus system—along the Ring Road and the original Tripureswor-Suryabinayak route—presents a compelling solution to modern urban challenges.

The golden era of trolley bus

The trolley bus system was inaugurated on 28 Dec 1975, with an investment of Rs 40m from China. Twenty-two trolley buses began operations, covering the 13-km stretch between Tripureswor and Suryabinayak, passing through key areas like Koteshwor, Thimi, and Bhaktapur. The system was a visionary project, initiated during King Mahendra’s reign and realized under King Birendra, leveraging Nepal’s abundant hydroelectric potential to power clean public transport.

For residents of the Kathmandu Valley, the trolley bus was a lifeline. It facilitated seamless travel for commuters from Bhaktapur, Thimi, and surrounding areas to the capital, offering a comfortable, reliable, and affordable ride. Unlike diesel-powered buses, the electric trolley buses produced no tailpipe emissions, contributing to cleaner air in a valley already showing signs of urban strain. By the 1980s, the system was absorbing up to 80 percent of passenger journeys between Kathmandu and Bhaktapur, carrying as many as 10,000 passengers daily. Economically, the buses were a boon, requiring no fuel and minimal maintenance compared to fossil-fuel vehicles. Plans were even drawn to extend the route to encircle the Ring Road and reach Kalanki, a vision that promised to transform valley-wide mobility.

However, the system’s golden era was short-lived. By the late 1980s, political unrest and management inefficiencies began to erode its success. Overhead wires and pylons were damaged, resources were misused, and maintenance was neglected. By 1989, the once-profitable system started incurring losses, and private bus operators, rumored to have sabotaged the service, gained ground. The Nepal Trolley Bus Service, a branch of the Nepal Transportation Corporation (NTC), struggled under bureaucratic overstaffing and cronyism. Operations were suspended in 2001, briefly revived in 2003 on a truncated 5-km route from Tripureswor to Koteshwor, and permanently shuttered in November 2008. Today, the rusting hulks of the trolley buses at the Baneswor terminal stand as a poignant reminder of a lost opportunity.

Kathmandu’s modern mobility crisis

Fast-forward to 2025, and the Kathmandu Valley is choking under the weight of its own growth. With a population of nearly 4m and 1.75m registered vehicles, the valley faces unprecedented traffic congestion, air pollution, and an unreliable public transport system. Motorbikes dominate, making up 79 percent of the vehicle fleet, while microbuses and minibuses—low-occupancy, poorly maintained, and often overcrowded—constitute 94 percent of public transport vehicles. These diesel-powered vehicles emit significant particulate matter, contributing to Kathmandu’s ranking as one of the world’s most polluted cities. An estimated 9,943 Nepalis die prematurely each year due to outdoor air pollution, with the valley bearing a disproportionate burden.

The Ring Road, an eight-lane artery encircling Kathmandu and Patan, was designed to alleviate central congestion but is now overwhelmed by traffic. Microbuses, notorious for erratic driving and frequent stops, exacerbate delays and pollution. Despite road expansions, the lack of an efficient mass transit system has driven reliance on private vehicles, with motorbike and car ownership soaring. Public transport serves only 28 percent of the valley’s population, and commuters face long waits, cramped conditions, and unreliable schedules. The economic toll is staggering, with congestion causing losses in productivity, increased fuel imports, and public health costs.

The case for revival

Reviving the trolley bus system offers a sustainable, cost-effective solution to Kathmandu’s mobility and environmental woes. Trolley buses, powered by overhead electric wires, have distinct advantages over battery-operated electric buses, which dominate current discussions on green transport. They require no expensive batteries, reducing upfront costs and eliminating the need for frequent battery replacements or imports. Their continuous power supply ensures uninterrupted operation, unlike battery buses that need recharging. Nepal’s surplus hydroelectric capacity, especially during the monsoon season, could power a revived trolley bus network, reducing reliance on imported fossil fuels and improving the balance of trade.

Two potential routes stand out for revival: the original 13-km Tripureswor-Suryabinayak corridor and a new 27-km loop along the Ring Road. The Tripureswor-Suryabinayak route, serving densely populated areas like Bhaktapur and Thimi, could recapture its former glory as a high-demand commuter lifeline. A Ring Road trolley bus system would connect key nodes across Kathmandu, Lalitpur, and Bhaktapur, offering an alternative to microbuses and private vehicles. Both routes could integrate with smaller electric vans or Safa Tempos for last-mile connectivity, creating a cohesive public transport network.

A 2006 revival attempt by the Kathmandu Electric Vehicle Alliance projected annual profits of one crore Nepali Rupees within a year, demonstrating economic viability. Modern trolley buses, equipped with e-ticketing, GPS tracking, and improved comfort, could attract riders accustomed to private vehicles. Studies show 73 percent of Kathmandu commuters support a shift to public transport, particularly if it’s reliable and eco-friendly. Prioritizing punctuality, comfort, and real-time information—key passenger demands—could ensure high ridership.

Challenges and solutions

Reviving the trolley bus system is not without hurdles. The 2006 effort failed due to deteriorating infrastructure and lack of maintenance, underscoring the need for robust management. Political will is critical, as past failures were tied to bureaucracy and cronyism. The valley’s 18 municipalities must collaborate, potentially through a dedicated transport authority, to coordinate routes, subsidies, and infrastructure. Subsidies will be essential, as public transport often operates at a loss to ensure accessibility, but the economic and environmental benefits justify the investment.

Infrastructure costs, including overhead wires and substations, pose another challenge. However, trolley buses are cheaper to deploy in smaller cities like Kathmandu compared to sprawling metropolises. Partnerships with international donors, such as the Asian Development Bank, which funded low-emission buses in 2018, could offset costs. Public-private partnerships, as seen in the ADB’s Kathmandu Sustainable Urban Transport Project, could ensure sustainability. Learning from past mistakes, rigorous maintenance schedules and anti-corruption measures are non-negotiable.

Competition from microbuses, backed by powerful private operators, could resist the trolley bus revival. A phased approach, starting with a pilot route, could build public support and demonstrate viability. Regulatory reforms, such as prioritizing trolley buses in dedicated lanes or banning diesel microbuses on key routes, could level the playing field.

A vision for the future

The trolley bus system’s revival could transform Kathmandu into a model of sustainable urban mobility. By reducing reliance on microbuses, it would cut particulate emissions, easing the valley’s air pollution crisis. Dedicated trolley bus lanes could streamline traffic flow, reducing congestion on the Ring Road and Tripureswor-Suryabinayak corridor. Economically, lower fuel imports and increased productivity would bolster Nepal’s economy. Socially, an accessible, dignified public transport system would improve quality of life, particularly for low-income commuters.

Kathmandu’s trolley buses once represented a bold leap into the future. Today, they offer a chance to reclaim that vision, blending nostalgia with necessity. With Nepal’s hydroelectric potential, public demand for green transport, and lessons from past failures, the time is ripe for revival. The rusting relics at Baneswor need not be the end of the story—they could be the prologue to a cleaner, less congested Kathmandu Valley.

The gold is being traded at Rs 193, 600 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of silver, however, has increased by Rs 5 and is being traded at Rs 2, 295 per tola today.

The United States has completed a review of foreign aid for the Millennium Challenge Corporation (MCC) portfolio as part of alignment with the Trump administration’s ‘America First’ foreign policy. The new strategy, MCC explained in a press statement, will make the US ‘safer, stronger and more prosperous’. Further details are to follow after the MCC Board decision-making process and other consultations with the US Congress and partner countries.

The $500m MCC Compact is being implemented in collaboration with the government. The government has agreed to add another $197m, making the project’s total cost stand at $747m. The compact will develop Nepal’s transmission network for electricity and highways, promoting national prosperity and regional energy integration.

Earlier, Millennium Challenge Account Nepal (MCA-Nepal) appreciated the US government’s decision to allow continuation of the project under a special exception with the ongoing suspension of larger foreign aid programs.

On Jan 20, US President Donald Trump issued an executive order directing a review of all US foreign aid in accordance with the ‘America First’ policy. This led to a halt in the disbursement of aid from organizations like USAID and MCC for 90 days. Although MCC was exempted at first, its funding was eventually included in the suspension.

However, in March, MCC granted permission for Nepal to continue with essential procurement and office operations. Since then, project implementation has resumed. The MCC Board has already approved an additional $50m in Jan 2025 to address cost overruns in the transmission line component, although both the Nepal cabinet and US Congress are yet to confirm the release of these funds.

Contracts for three substations of Tanahun (Damauli), Nuwakot (Ratmate) and Nawalparasi, as well as for an 18-kilometer transmission line between the New Butwal substation and the Indian border, have been issued. Physical work has already begun in most places.

MCA-Nepal has also tendered for the remaining 297 km of transmission lines and bid evaluations are in the final phase. An earlier tender for 315 km had to be cancelled after bids received were over 60 percent higher than estimated costs.

Implementation of the five-year compact began on 30 Aug 2023. Any unspent money at the close date will be returned to the US government. To date, during fiscal years 2023 and 2024, $471.3m in obligations have been incurred under the MCC Nepal Compact, states ForeignAssistance.gov.

Signed in Sept 2017, the MCC-Nepal Compact took years of politicking, parliamentary ratification finally happening on 27 Feb 2022. At last, after a six-year break since the signing of the agreement, the project was launched officially in Aug 2023.

Though Nepal has already increased its share from the originally agreed $130m to $197m, the additional $50m MCC aid remains uncertain. Whether or not the Trump administration will approve the additional funds and whether or not Nepal’s cabinet will endorse it remains unknown.

Millennium Challenge Corporation (MCC) is a US government agency established by the Congress in 2004 as an independent entity to reduce global poverty through granting time-limited programs of economic growth, poverty reduction and institution building. While the agency’s top priority is development in partner countries, its mission is also designed to promote American interests abroad.

Nepal was eligible for MCC assistance in 2014 and obtained the $500m grant following persistent dialogue. The compact is one of the biggest bundles of US assistance to Nepal ever and is being implemented under MCA-Nepal, an office established under Development Board Act, 2013.

The Nepal Stock Exchange (NEPSE) plunged by 23. 93 points to close at 2, 958. 71 points on Sunday. 

Similarly, the sensitive index dropped by 4. 36 points to close at 512. 76 points.

A total of 58,653,762-unit shares of 323 companies were traded for Rs 26. 57 billion.

Meanwhile, Samata Gharelu Laghubitta Bittiya Sanstha Limited (SMATA) and Trade Tower Limited (TTL) were the top gainers today with their price surging by 10. 00 percent. Likewise, Narayani Development Bank Limited (NABBC) was the top loser as its price fell by 6. 34  percent.

At the end of the day, the total market capitalization stood at Rs 1. 68 trillion.