The cost of several national pride projects has surged dramatically due to prolonged delays and slow construction progress, with expenses expected to rise by as much as 113 percent.
According to the 63rd report of Nepal’s Office of the Auditor General (OAG), six major projects under the Ministry of Energy, Water Resources and Irrigation (MoEWRI) have already consumed Rs 104.92 billion. However, their total projected cost is now expected to exceed Rs 217.16 billion upon completion. Physical progress across these projects ranges between 26.65 percent and 82.27 percent.
The report highlights that although the contract process for the dam site and powerhouse of the Sunkoshi Marin Diversion Project has been completed, authorities have yet to sign a new agreement. Similarly, the estimated cost of the Budhigandaki Hydropower Project has jumped from the original Rs 260 billion to nearly Rs 398 billion, with further increases likely.
The OAG stated that Rs 45.11 billion has already been distributed as land acquisition compensation in the Budhigandaki project area. Despite finalizing the investment modality, construction work has still not begun.
Progress on major transmission line projects remains critically slow. The Karnali Corridor 400 kV transmission line has achieved only 24.28 percent completion, while the Bheri Corridor stands at just 2 percent. The Kimathanka-Arun Hub 400 kV transmission line has reached 2.77 percent progress, and the West Seti–New Attariya line only 0.89 percent.
Likewise, the Tamor Hub–Chhagedhunga Sanghu 220 kV transmission line has completed merely 2.63 percent of its work. Under transformational projects, the ministry is implementing two cross-border and 16 national transmission line projects.
The report also noted extremely slow progress in other transmission infrastructure. Construction of the Lamabagar–Bahrabise transmission line stands at only 1.11 percent, while the Sheetalpati–Dhungesanghu transmission line has achieved just 0.21 percent completion.
In Bardiya, the financial audit of the Babai Bhada Aurahi River Management Project revealed that authorities failed to recover Rs 20.47 million from the contractor after the contract was terminated. Additionally, 66 projects managed through 13 agencies under the ministry have already spent Rs 1.33 billion despite remaining incomplete.
The OAG further reported delays in the Ranijamara Kulariya Irrigation Project and the third phase of the Mahakali Irrigation Project. Planned construction of supporting and side canals has not yet started due to the inability to secure consent for mobilizing necessary resources.
According to the report, key obstacles affecting project implementation include land disputes, delays in determining financial modalities, insufficient budget allocation, forest-related complications, and failure to follow action plans. These issues have significantly increased both project timelines and costs.
The OAG has urged concerned authorities to complete projects on time while maintaining approved cost and quality standards. It also emphasized the need for stronger inter-agency coordination, timely resolution of project-related obstacles, regular review of performance agreements, and adequate funding arrangements.
