Nepal cancels tender for Sunkoshi Marin dam and power plant — Kathmandu Post

Nepal has cancelled the tender procedure for a contract to build a dam and power plant for the Sunkoshi Marin multipurpose project. The decision was made several days before the planned opening of financial proposals from three companies that passed technical selection, Kathmandu Post reports.

Senior project engineer Ashok Raj Gautam said the procedure was cancelled on the instruction of the Department of Water Resources and Irrigation. According to him, the department must decide whether to announce a new tender or choose another course of action. He did not explain the reasons for the cancellation.

Final stage of the competition

International competitive bidding was announced on June 8, giving potential contractors 30 days to submit proposals. Six construction companies took part.

China International Water and Electric Corporation, Anneng-RCC JV and Sinohydro Corporation Limited of China advanced to the final stage. Their financial proposals were scheduled to be opened on Monday, but this will not happen following the cancellation of the procedure.

More current news is available on the UA.News Telegram channel Telegram.

Project delays

The Sunkoshi Marin project is intended to provide year-round irrigation for 122,000 hectares of agricultural land in five Terai districts — Bara, Rautahat, Sarlahi, Mahottari and Dhanusha. It also provides for the generation of 31.07 MW of electricity.

A previous contract worth 14.07 billion rupees was awarded in January 2023 to Patel-Raman JV, a joint venture comprising India’s Patel Engineering and Nepal’s Raman Construction. The agreement was terminated on November 11, 2025, due to insufficient progress: after 60% of the allotted period had elapsed, physical work completion did not exceed 11%.

The project includes a dam about 30 metres high and 158 metres long on the Sunkoshi River and the diversion of water through a tunnel to the Marin River in Sindhuli district. The 13.3-km tunnel has already been completed and tested, but it cannot be commissioned without the dam. Under the revised master plan, the entire project is to be completed in the 2032–33 fiscal year.