The process of terminating the contract agreement with Patel-Raman JV, the contractor for the Sunkoshi Marin Diversion Multipurpose Project of national pride, has been taken forward.

The Patel-Raman JV in Janakpur-9, Dhanusha was responsible for the supply and installation of dams (headworks), civil structures, including power plants, gates, and other hydromechanical equipment for the project.

The project office issued a public notice on Tuesday, calling on the contractor to explain why the contract should not be terminated.

According to the notice, the termination process has been taken forward due to the contractor’s poor performance and minimal progress in the construction works.

The project reported that the physical progress has reached only around 10 per cent, while about 61 per cent of the contract period has already elapsed.

Despite repeated notice and directives to expedite the work as per the contract provisions, the contractor has shown no significant improvement or willingness to accelerate progress, the project said.

Along with the contract termination process, the project has also initiated action to forfeit a total of Rs. 3.6 billion in bank guarantees - comprising Rs. 2.4 billion submitted as Performance Bond Guarantee and Rs. 1.2 billion as Advance Payment Guarantee by Patel-Raman JV.

The Sunkoshi Marin Diversion Multipurpose Project is one of the national pride projects aimed at diverting water from the Sunkoshi River to the Marin River to boost irrigation and hydropower generation.

Earlier, Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport Kul Man Ghising had held discussions with the Secretary of the Ministry of Physical Infrastructure and Transport, Director General of the Department of Irrigation and Water Resources, Project Chief, consultant and construction entrepreneur on September 23 after noticing unnatural delays in the construction of the project.

Minister Ghising had said that the tunnel construction had been completed but the project was stalled due to the failure to build structures such as the dam and power house, and that it is a must to move in an alternative way to continue the project.

A contract agreement was signed with Patel-Raman JV for the construction of the project for Rs. 14.88 billion (including taxes).

The contractor company had quoted about 32 per cent less than the estimated cost.

The contractor started work in February 2023. As per the agreement, the construction of the project should be completed by mid-July 2027.

However, the physical progress so far is only about 10 per cent. So far, around Rs. 2.14 billion (about 15 per cent) has been paid, according to the project.

The 13.3-kilometer tunnel of the project was dug using a tunnel boring machine. The breakthrough of the tunnel was made on May 8, 2024.

The water of the Sunkoshi River on the border of Sindhuli and Ramechhap will be supplied to the Bagmati Irrigation Project through a tunnel in the Marin River.

The goal is to provide year-round irrigation facilities to a total of 122,000 hectares of land in Dhanusha, Mahottari, Sarlahi, Rautahat and Bara, including the 45,600 hectares of land currently irrigated.

The Sunkoshi water will be diverted to the Marin River to generate 31 megawatts of electricity.