Kathmandu, Nov 11: The National Pride Sun Koshi–Marin Diversion Multipurpose Project has initiated the process to cancel its contract with contractor Patel–Raman JV, which was responsible for constructing key structures, including the dam’s headworks. On Tuesday, the project office issued a public notice asking the company to explain why the contract should not be terminated, citing failure to meet agreed work standards.
Patel–Raman JV had been contracted to build civil structures and supply and install hydromechanical equipment such as the powerhouse and gates. Despite completing about 61 percent of the contract period, physical progress stands at only 10 percent. The project office said the company showed no urgency to speed up work and ignored instructions issued under the contract to improve performance, prompting the decision to proceed with termination.
Alongside the contract cancellation, the project has begun the process to seize the company’s bank guarantee totaling Rs 3.6 billion. This includes Rs 2.4 billion as performance security and Rs 1.2 billion for advance payments.
Earlier, Energy, Water Resources, and Irrigation Minister Kulman Ghising expressed concern over the unusual delays. On October 24, he met with ministry officials, consultants, and contractors to discuss the project. Although the tunnel has been completed, the dam and powerhouse structures remain unfinished, leaving the project stalled. It was concluded that work must now move forward under a new leadership structure.
Contract Details
The contract with Patel–Raman JV was valued at Rs 14.08 billion, including taxes, about 32 percent below the estimated cost. Work began in January 2023 and was scheduled to finish by mid-July 2027. To date, the contractor has been paid around Rs 2.14 billion, roughly 15 percent of the total contract value.
The 13.3-kilometer tunnel, bored using a tunnel boring machine, was successfully completed on August 9, 2024. The project aims to divert water from the Sun Koshi River in Sindhuli–Ramechhap to the Marin River, feeding the Bagmati Irrigation Project. Upon completion, it will provide year-round irrigation for 122,000 hectares across Dhanusha, Mahottari, Sarlahi, Rautahat, and Bara districts, and generate 31 MW of hydropower. The project’s total estimated cost is Rs 49.42 billion.
This step marks a decisive move to address long-standing delays and ensure the multipurpose project achieves its irrigation and power generation targets.
People’s News Monitoring Service
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