Kathmandu. The process of terminating the contract agreement with the contractor Patel-Raman JV and Janakpur-9 Dhanusha for the supply and installation of hydro-mechanical equipment including the dam (headworks), power house and gates of the Sunkoshi Marin Diversion Multipurpose Project.

The project has issued a public notice on Tuesday asking why the contract agreement will not be annulled. According to the project officials, the process of terminating the contract has been initiated as the physical progress is very low at 10 per cent even though the contract agreement period is 61 per cent over, there was no urgency to increase the progress and no interest was shown to improve the works as per the provision of the contract.

Along with the cancellation of the contract, the project has also initiated the process of forfeiture of Rs 3.60 billion bank guarantee, including Rs 2.40 billion kept by Patel-Raman JV as performance guarantee and Rs 1.20 billion as advance payment.

Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport and Urban Development Kulman Ghising on September 2018 held discussion with the ministry’s secretaries, director general of the Department of Irrigation, project chief, consultants and contractors after seeing unusual delay in the construction of the project. He said that the tunnel construction has already been completed but the project has not been able to construct dam and power house.

The contract for the project was signed with Patel-Raman JV at a cost of Rs 14.08 billion. The Patel-Raman JV had bid about 32 percent less than the estimated cost. The contractor had started construction work from January 2079. According to the agreement, the construction work should be completed by July 2084. However, the physical progress so far is only about 10 percent. So far, Rs 2.14 billion (about 15 per cent) has been paid.

The 13.3-kilometer tunnel was dug using boring machines. The tunnel was pierced on April 26, 2081. The water from the Sunkoshi River located on the border of Sindhuli and Ramechhap will be diverted to the Marin River through a dam and diverted to the Bagmati Irrigation Project. The project aims to provide irrigation facility to 45,600 hectares of land and a total of 122,000 hectares of land in Dhanusha, Mahottari, Sarlahi, Rautahat and Bara districts.

A 31 MW hydropower will be generated by diverting water from the Sunkoshi River to Marin River. Sunkoshi Marin has been implemented as a project of national pride and transformation as it would provide year-round irrigation facility in five districts of Madhesh province, significantly improve the livelihood of farmers, contribute to the economy of the entire country by generating hydropower and also contribute to the provincial balance. The estimated cost of the project is Rs 49.42 billion.