The Sunkoshi Marin contract for building the project’s dam and powerhouse has been cancelled, just days before the financial bids of three shortlisted companies were due to be opened. The Kathmandu Post reported on November 1, 2026 that the decision throws one of Nepal’s national pride projects into fresh uncertainty and pushes back year-round irrigation for farmers across five Madhesh districts.
What happened to the Sunkoshi Marin contract
The Sunkoshi Marin Diversion Multipurpose Project invited international competitive bids on June 8, giving contractors 30 days to submit proposals. That tender came about seven months after the project ended its previous contract. By late October the process had reached its final stage, and the financial proposals were scheduled to be opened on Monday.
Instead, the project cancelled the process. Ashok Raj Gautam, a senior divisional engineer at the project, told Kantipur that the cancellation was made as directed by the Department of Water Resources and Irrigation, and that the department will now have to decide whether to call fresh bids or take another course of action.
Key details
- Bidders: six construction companies took part in the tender.
- Final round: three Chinese firms passed the technical evaluation: China International Water and Electric Corporation, Anneng-RCC JV and Sinohydro Corporation Limited.
- Did not qualify: India’s SIL, Vietnam’s Song Da Corporation and China’s CREGC-SWDCC JV.
- The dam: about 30 metres high and 158 metres long across the Sunkoshi river.
- The tunnel: already built. It will carry water to the Marin river at Kusumtar in Kamalamai Municipality, Sindhuli, where a powerhouse is planned.
- Benefits: year-round irrigation for 122,000 hectares in Bara, Rautahat, Sarlahi, Mahottari and Dhanusha, plus 31.07 MW of electricity.
- Cost and timeline: launched in fiscal year 2016-17 with an estimated cost of Rs 49.42 billion; a revised master plan now targets completion in fiscal year 2032-33.
The finished tunnel cannot be used until the dam exists to divert the water, so a large part of the money already spent is waiting on this one contract.
Why the Sunkoshi Marin contract matters for homeowners in Nepal
At first glance an irrigation dam seems far from house building, but large public projects shape the whole construction economy. When a big contract stalls, demand for cement, steel, aggregates and skilled workers in that region shifts, and local contractors who were planning for subcontract work have to look elsewhere. For families in Sindhuli and the five Terai districts, it also delays the farm income that many households use to fund a new house or an extra floor.
The cancellation is a reminder of something every homeowner sees on a smaller scale: a project can be delayed for years when the contract stage goes wrong. Choosing a contractor carefully, and having a clear written agreement, protects your build the same way good procurement protects a national project.
It also matters for anyone buying land near the project area. Land prices often move on expectations of irrigation, roads and power. When those benefits slip by years, the value you were counting on may arrive much later than promised.
What to do next
- If you are buying land in Bara, Rautahat, Sarlahi, Mahottari, Dhanusha or Sindhuli, don’t pay a premium based only on the promised irrigation; the timeline has slipped again.
- Get at least two quotes for your own building work and sign a written contract that covers price, schedule and penalties for delay.
- Keep a contingency of 10 to 15 percent in your budget for delays and price changes. Our house construction cost calculator helps you estimate the full cost first.
- Follow official notices from the Department of Water Resources and Irrigation for any new tender.
- Read our earlier report on new irrigation projects in Nepal for more background.
FAQ
Why was the Sunkoshi Marin contract cancelled?
The project said it acted on the direction of the Department of Water Resources and Irrigation. A detailed public reason had not been reported at the time of writing.
Which companies were in the final round?
China International Water and Electric Corporation, Anneng-RCC JV and Sinohydro Corporation Limited had passed the technical evaluation.
When will the project be finished?
A revised master plan targets fiscal year 2032-33, but the cancellation adds fresh uncertainty to that date.
Is the tunnel finished?
Yes, the diversion tunnel has been built, but it can’t be put into operation until the dam is complete.
Source: The Kathmandu Post, November 1, 2026.