The tunnel's construction, the first phase of the Bheri Babai Multipurpose Project, was completed a year ahead of schedule. However, the second and third phases have been delayed.

The government has extended the completion deadline for this national pride project to the fiscal year 2027-28.

The project was initially scheduled to be completed by 2022-23, but the deadline has been extended by five years. Despite the extension, the current pace of work has raised concerns about whether the project will be completed within the revised timeframe.

The project was initially planned to begin in 2011-12 but commenced in 2014-15.

The China Overseas Engineering Group was awarded the contract to complete the first phase by March 2020. The company finished constructing the 12.2 km-long tunnel ahead of schedule.

Yagya Prasad Dhakal, mayor of Bheri Ganga Municipality, expressed concerns about the project’s progress.

“The government has allocated the budget, but there is no significant work pressure at the project site. The current progress does not indicate completion within the given deadline,” he said.

“If completed, this project will be a milestone for the development of Karnali. Therefore, all stakeholders must actively engage to ensure timely completion,” added Dhakal.

Various factors have contributed to the delays, including budget allocation issues, the decision to start dam construction only after the tunnel was completed, the impact of Covid-19, and the blacklisting of a foreign company involved in the project.

Another setback occurred when the agreement with the Iranian company Mahab Ghodss Consulting Engineering, which was serving as a consultant, was cancelled in January 2023 after being signed in September 2019. This further delayed progress.

According to Pawan Adhikari, the project’s information officer, the second phase of work is 50 percent complete, while the third phase has reached 40 percent.

The second phase includes the construction of the dam, powerhouse, hydro-mechanical and electro-mechanical installations, and other associated infrastructure.

A headrace is being constructed in Chiple, Surkhet. Two of the six planned waterway sections are nearing completion.

“For the remaining four waterways, preparations to divert the river are underway. The slope protection work at the powerhouse site in Hattikhola is in its final stage,” said Adhikari, a senior divisional engineer.

“The coffer dam and anchor block foundation work is progressing rapidly. Simultaneously, work on the powerhouse foundation at Hattikhola on the Babai Riverside is underway.”

Raman and Guangdong Joint Ventures are executing the second phase.

According to Rana Bahadur Bam, the project chief, the project has been allocated a budget of Rs1.77 billion for the current fiscal year, of which Rs460 million had been spent by mid-January.

The project has achieved 66 percent physical progress, with around 150 workers employed daily.

The project aims to generate approximately 46MW of electricity by constructing a dam on the Bheri river in Chiple, Bheri Ganga Municipality, and diverting the water to the Babai river, located on the border of Surkhet and Bardiya.

Additionally, the project is expected to provide irrigation for around 51,000 hectares of farmland in Banke and Bardiya districts.

The construction was significantly impacted by the Covid-19 pandemic, causing a two-year delay. The project's estimated total cost is Rs33.19 billion, with 51 percent financial progress achieved so far. To date, Rs16.96 billion has been spent.

Last year, floods also created obstacles to the construction, further delaying progress.

“If no further obstructions arise, we are prepared to complete the work within three years,” said Bam. He emphasised that efforts are being made to complete the project within the revised deadline.

The government plans to connect the electricity generated by the project to the national grid.

The third phase will focus on mobilising Bheri River water for irrigation.

Water will be diverted from the Bheri river through a tunnel at 40 cusecs.

To facilitate this process, a 114-metre-long and 14-metre-high barrage will be constructed at Chiple.

The project will submerge over 32 hectares of land in the Bheri Ganga, Gurvakot, and Lekbesi municipalities of Surkhet.

Compensation for eight hectares has already been distributed, while a notice has been issued to acquire an additional 10 hectares. The land certification process is also in progress.

Karnali Province Chief Minister Yamlal Kandel said that the provincial government is actively coordinating efforts to ensure the project’s completion within the revised deadline.