An evaluation is underway following the termination of a major construction contract for the Sunkoshi–Marin Diversion Multipurpose Project. The cancelled package involved dam and powerhouse construction, including gates, and the supply and installation of hydromechanical equipment.
The project office had issued a 14-day public notice on November 24 announcing its decision to terminate the contract with Patel–Raman JV. In accordance with the contract provisions, the agreement was officially terminated on December 8.
Following the termination, the project authority seized the contractor’s equipment, site office, and construction area. Officials are assessing completed work, on-site equipment, remaining construction, and required additional work. A revised cost estimate and new tender documents will be prepared based on this assessment.
Minister Kulman Ghising inspected the Seleghat headworks construction site in Ramechhap on Monday, reviewing conditions after contract termination and directing the immediate launch of a new tender process.
Following the termination of the Patel-Raman JV contract for poor performance (10% physical progress after 61% of the contract period), the minister directed the project team to immediately initiate a new tender process.
The assessment should encompass completed works, outstanding construction, and additional requirements identified during implementation, ensuring the tunnel’s timely completion within a revised, realistic timeline.
A Rs 14.08 billion (USD 105–106 million) contract for the Sunkoshi-Marin Diversion Project, a national priority aimed at diverting water from the Sunkoshi River to the Marin River basin for irrigation, hydropower, and flood control, was terminated due to the contractor’s lack of urgency and failure to address performance improvement notices.
Following the contract cancellation, authorities are prioritizing a rapid assessment and new tender that reflects on-site conditions. The government emphasises that further delays would jeopardise the project’s objectives, particularly after the successful tunnel completion. Project officials aim to regain momentum and ensure consistent progress under a revised schedule.
