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The Sunkoshi Marin Diversion Multipurpose Project, which holds significant potential for boosting agricultural productivity in Madhes Province, is progressing slowly due to delays by contractors and technical challenges. Despite its importance, only 36.83 percent of the project’s physical work has been completed so far.

Originally slated to begin in the fiscal year 2019/20 and be completed by 2028/29, the project has an estimated cost of Rs 49.42bn. Of the allocated Rs 19.33bn budget, Rs 16.5bn has been spent. While approximately 53 percent of the dam construction is complete, overall progress remains slow. The project aims to divert 67,000 liters per second of water from the Sunkoshi River into the Marin River, providing year-round irrigation to 122,000 hectares of land across Dhanusha, Mahottari, Sarlahi, Rautahat, and Bara districts. Additionally, it is expected to generate 31.07 megawatts of hydroelectric power, with potential annual revenue of Rs 1.55bn from electricity generation.

The project involves constructing a barrage about one kilometer downstream from the Sunkoshi-Tamakoshi confluence in Sindhuli district, with water to be transported through a 13.316 km tunnel into the Marin River. So far, tunnel construction has been completed using TBM machines, and environmental impact assessments (including supplementary studies) have been approved. Compensation has been distributed for 46.61 hectares of land, and construction on 2 km of the Marin River Control Work is underway. The project has also issued a second contract package and initiated lift irrigation in flood-affected areas.

According to Project Chief Achutraj Gautam, coordination with the Department of Roads for the Madan Bhandari Road Realization Design is ongoing, and transmission line work is also in progress. The cost estimate for electromechanical components has been finalized, and a pre-feasibility study is underway to explore additional power generation from a cascading system between the Marin and Bagmati rivers.

The project’s overall progress stands at 36.83 percent physically and 33.39 percent financially. Mobilization funds totaling Rs 1.214bn have been issued, while Rs 2.135bn (approximately 15 percent of the total) has been paid to contractors.

Multiple construction companies have been awarded contracts for various parts of the project. China Overseas Engineering Group, responsible for the headrace tunnel and related structures, has completed 97 percent of its work. In contrast, Patel Raman JV, tasked with civil and hydro-mechanical works, has completed only 10 percent since the contract was signed.

The project office has issued 22 letters to various contractors concerning work delays. According to the project chief, over 600 letters have been sent regarding different issues, but many remain unanswered, violating the 28-day response time outlined in the contract. “The negligence is evident—we received the same drawing 28 times,” said Gautam. “Despite several management meetings, Patel Engineering has not met its commitments.”

Raman JV representative Naveen Chaudhary cited weather-related difficulties for the delays. “Due to continuous rain and unstable soil, our machinery cannot function properly. Workers are unwilling to continue in such conditions. We plan to resume full-scale work after November,” he said.

The project has also encountered several instances of non-compliance by contractors, including the use of unapproved materials, lack of transparency regarding stock, and failure to adhere to safety protocols and technical specifications. Contractors have not built the engineer-employee camp that was due within six months—even after two and a half years. Additionally, repeated demands for extra payments have been made without fulfilling contractual obligations.

Under one contract package, only 7,000 cubic meters of the required 48,000 cubic meters of work have been completed. The project office has also cited delays in submitting proper method statements and inefficient use of mobilization payments as further obstacles.

The country’s largest hydropower project being developed by the private sector has achieved financial closure. Times Energy Pvt Ltd, a subsidiary of Sahas Urja Ltd, has secured a Rs 52.5bn bank financing to build the Budhigandaki semi-reservoir hydropower project (341 MW) in Gorkha district. A consortium of 10 commercial banks and financial institutions led by Nepal Investment Mega Bank (NIMB) is financing the project. Nabil Bank, Laxmi Sunrise Bank, Global IME Bank, Hydroelectricity Investment and Development Company Ltd (HIDCL), Machhapuchchhre Bank, Citizens International Bank, Nepal Infrastructure Bank, Prabhu Bank and Agricultural Development Bank are the other partners in the consortium. 

The project is expected to cost an estimated Rs 70bn. Of this, 75 percent, or Rs 52.5bn, will be financed through debt from the consortium, while the remaining 25 percent, or Rs 17.5bn, will come through equity investment from the promoters. Sahas Urja will contribute 51 percent of the equity investment amounting to around Rs 8.93bn.

According to Sahas Urja, the access road to the project site has already been completed and the process of distributing compensation for land required for the project is underway. Construction is scheduled to begin from early 2026. The company has already signed a power purchase agreement with the Nepal Electricity Authority (NEA). 

NEA will pay the company Rs 8.4-10.55 per unit in the dry season and Rs 4.80 per unit in the wet season. The license to develop the project was originally held by Times Energy promoted by entrepreneur Deepak Malhotra. The project got momentum after Sahas Urja, which owns the Solukhola hydropower project (86 MW), acquired Times Energy for around Rs 2bn about a year ago.

The project will be built on Budhigandaki river that flows through Chum Nubri and Dharche rural municipalities of Gorkha. The dam is located in Tsum Nubri Rural Municipality in the Manaslu Conservation Area. Other structures will be located outside the conservation area. Times Energy received the generation license from the Department of Electricity Development in Dec 2023.

Designed as a peaking run-of-river (PRoR) project, the project will have a reservoir capable of daily peaking for five hours. The underground powerhouse will have six vertical-axis Pelton turbines of 57 MW each. The project aims to begin commercial generation in 2030. The power generated by the project will be connected to the 400 kV Ratamate substation being built under the Millennium Challenge Corporation (MCC) compact.

The price of gold reached an all-time high in the domestic market on Friday, setting a new historical record.

According to the Federation of Nepal Gold and Silver Traders, the price of gold has increased by Rs 1, 000 per tola to reach Rs 199, 400 per tola today. It was traded at Rs 198, 400 per tola on Thursday.

Similarly, the price of silver has increased by Rs 10 and is being traded at Rs 2, 325 per tola.

The Nepal Stock Exchange (NEPSE) gained 18. 30 points to close at 2, 850. 37 points on Thursday.

The sensitive index, however, dropped by 2. 61 points to close at 490. 16 points.

A total of 25,403,540-unit shares of 318 companies were traded for Rs 8. 53 billion.

Meanwhile, Sikles Hydropower Limited (SIKLES) was the top gainer today, with its price surging by 9. 81 percent. Likewise, Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB) was the top loser as its price fell by 8. 26 percent.

At the end of the day, total market capitalization stood at Rs 1. 61 trillion.