Civil works under the second phase of the National Pride Bheri Babai Diversion Multipurpose Project have missed their deadline for the third time, with only 57 percent physical progress achieved so far.

A joint venture of Raman Construction and China’s Guangdong Yuantian had taken the contract in August 2019, with a four-year deadline and a budget of Rs6.16 billion. The deadline was first extended in 2023 by one year and again last September for seven months. The latest deadline expired on Friday.

The contractor has now sought a fourth extension of around three years and four months, project director Haridatta Paudel said. He said delays were initially attributed to the pandemic and later to shortages of construction materials, along with frequent design revisions.

“Work progress has improved recently, and we are preparing documents for another extension,” Paudel said, adding that terminating the contract and starting a new process would take more time.

The contractor is responsible for building a 114-metre-long, 14-metre-high dam with six gates on the Bheri river, along with a powerhouse at Hattikhal.

Financial progress stands at 47 percent. The project currently has civil, electrical and hydromechanical works underway, with a budget allocation of Rs1.75 billion for this fiscal year.

Officials said the Chinese partner had been urged to step in more actively after concerns over delays. The firm responded positively, saying both partners would work together to expedite construction.

Project delays were also worsened by a change in consultant. An Iranian firm initially handled consultancy, but its contract was terminated following US sanctions on Iran. Appointing a new consultant took around four to five months, information officer Hari Bahadur Thapa said. NEA Engineering Company, a subsidiary of the Nepal Electricity Authority, is currently serving as a consultant.

The contractor also faced setbacks after its contract for the Sunkoshi Marin Diversion Multipurpose Project in Sindhuli was terminated last year, affecting mobilisation, an engineer said. Monsoon-related river flow fluctuations have further disrupted work.

Local officials said a shortage of technical staff and workers at the site has slowed progress. “Budget has been allocated, but work intensity remains low,” said Bheriganga Municipality mayor Yagya Prasad Dhakal.

While the project’s first phase, involving tunnel construction, was completed ahead of schedule, delays persist in the second and third phases.

Overall physical progress stands at around 69 percent. Tunnel construction is complete, while hydromechanical works stand at 39 percent, electromechanical at 30 percent, and transmission line construction at just 5 percent.

Initially estimated at Rs33 billion, the project cost is now projected to rise to around Rs45 billion due to delays.

The project aims to divert water from the Bheri river through a tunnel into the Babai river, generating around 46 MW of electricity and providing irrigation to about 51,000 hectares of land in Banke and Bardiya.

So far, around Rs17 billion has been spent. The project is expected to submerge over 32 hectares of land across Bheriganga, Gurbhakot and Lekbeshi municipalities, with compensation for about 8 hectares already distributed.

The project was initially planned to begin in 2011-12, but it started actual work three years later in fiscal year 2014-15.