Slow progress drives National Pride Project costs up by 113 percent

KATHMANDU, May 23: Construction costs of several national pride projects are projected to increase by as much as 113 percent due to prolonged delays in implementation and slow construction progress.

The 63rd report of the Office of the Auditor General (OAG) states that Rs 104.92 billion has already been spent on six national pride projects under the Ministry of Energy, Water Resources and Irrigation (MoEWRI). However, the total cost of these projects is expected to exceed Rs 217.16 billion by the time of completion. The physical progress of the projects ranges from 26.65 percent to 82.27 percent.

According to the report, the contract process for the dam site and powerhouse of the Sunkoshi Marin Diversion Project has been completed, but a new contract agreement has yet to be signed. Similarly, the estimated cost of the Budhigandaki Hydropower Project has risen sharply from the initial projection of Rs 260 billion to nearly Rs 398 billion, with further escalation anticipated.

The report notes that Rs 45.11 billion has already been distributed as compensation for land acquisition in the Budhigandaki project area. Although the investment modality has been finalized, construction work has not yet commenced.

Among transmission line projects, progress remains minimal. The Karnali Corridor 400 kV transmission line has achieved only 24.28 percent physical progress, while the Bheri Corridor 400 kV transmission line stands at just 2 percent. The Kimathanka-Arun Hub 400 kV transmission line has progressed by 2.77 percent, and the West Seti–New Attariya 400 kV transmission line by only 0.89 percent.

Likewise, the Tamor Hub–Chhagedhunga Sanghu 220 kV transmission line has recorded only 2.63 percent progress. Under the transformational project category, MoEWRI is currently implementing two cross-border and 16 national transmission line projects.

The report further states that construction progress of the Lamabagar–Bahrabise transmission line stands at 1.11 percent, while the Sheetalpati–Dhungesanghu transmission line has achieved only 0.21 percent progress.

The financial audit of the Babai Bhada Aurahi River Management Project in Bardiya revealed that the project failed to recover Rs 20.47 million, including compensation amounts, from the contractor following contract termination. In addition, 66 projects implemented through 13 agencies under the ministry have consumed Rs 1.33 billion despite remaining incomplete.

The OAG also noted that planned construction of a supporting canal under the Lamki main canal of the Ranijamara Kulariya Irrigation Project, as well as the extension of side canals including Tribhuvan Basti under the third phase of the Mahakali Irrigation Project, has yet to begin. The delay has been attributed to the failure to secure consent for mobilizing the required resources.

According to the OAG, key factors hindering project implementation include land disputes, delays in finalizing financial modalities, inadequate budget allocation, forest-related complications, and failure to comply with action plans. These issues have contributed to significant increases in both project duration and overall costs.

In its report, the OAG has urged the concerned authorities to ensure timely completion of projects within the approved cost and quality standards. It has also emphasized the need to review the implementation status of performance agreements, address project-related obstacles promptly, strengthen inter-agency coordination, and ensure adequate funding arrangements.