header banner
ECONOMY

Half built in 20 years, Sikta's cost soars to Rs 53 billion

The project aims to irrigate 42,766 hectares of farmland by building a 317-metre barrage across the Rapti River at Agaiya in Rapti Sonari Rural Municipality, Banke. It targets irrigation of 33,766 hectares through the western main canal and about 9,000 hectares through the eastern main canal. The project is fully funded by the government.
alt=
By Arjun Oli

KATHMANDU, July 16: Two decades after construction began, the national pride Sikta Irrigation Project remains only half-complete. Launched in fiscal year 2005/06, the project had achieved just 50.5 percent physical progress by fiscal year 2025/26. Around Rs 24 billion has already been spent on infrastructure, while the total cost is now projected to reach Rs 52.89 billion upon completion.



The project aims to irrigate 42,766 hectares of farmland by building a 317-metre barrage across the Rapti River at Agaiya in Rapti Sonari Rural Municipality, Banke. It targets irrigation of 33,766 hectares through the western main canal and about 9,000 hectares through the eastern main canal. The project is fully funded by the government.


The original master plan, approved in 2007, estimated the cost at Rs 12.8 billion and targeted completion by fiscal year 2013/14. During construction, the government expanded the scope by adding an eastern main canal and other structures to cover an additional 9,000 hectares. A revised master plan approved in 2014 increased the cost to Rs 25.02 billion and extended the deadline to fiscal year 2019/20.


The project again missed the revised deadline. Under the latest master plan approved in 2022, completion has been pushed to fiscal year 2032/33 with a total estimated cost of Rs 52.89 billion.


The prolonged delay has prevented farmers from receiving the expected irrigation benefits. The project office claims irrigation facilities now reach about 22,500 hectares through completed canals and lift irrigation systems. Local farmers, however, dispute that claim, saying they still rely on rainfall and deep bore wells.


"The canals have been built, but water still does not reach our fields because branch canals remain incomplete," said farmer Rajesh Yadav of Khajura. He said farmers continue to depend on rain and bore wells every planting season and remain uncertain the project will be finished on time.


Local stakeholders have repeatedly urged the government to speed up construction. Nepalgunj civic leader Krishna Prasad Shrestha warned that farmland is increasingly being converted into housing plots, raising fears that much of the agricultural land may disappear before the project is completed.


Related story

Newly-built settlement for Musahars in Itahari unoccupied for t...


Despite spending Rs 24 billion, the canals have yet to deliver regular water supply. Locals blame delays on poor management, political interference and vested interests among ministers and officials.


The western main canal was designed to carry 50 cubic meters of water per second but has struggled to handle even 10 cubic meters. Structural failures caused repeated collapses, forcing project officials to limit water flow to between two and four cubic meters per second.


Construction of the 45-kilometre western main canal has been completed. The Sidhaniya, Akalgharuwa and Guruwagaun branch canals are nearing completion, while construction of the Dudhuwa branch canal has recently resumed. The Thapuwa and Titihiriya branch canals have not yet started.


The Dudhuwa branch canal, intended to irrigate around 16,000 hectares, remained stalled for years because of disputes involving contractor Coastal Pappu JV and a court case. Construction resumed last year under a new contractor after the dispute was resolved.


The 53-kilometerastern main canal also remains incomplete. Around 35-kilometers have been built from the barrage to Baisa Gaun, but work has stopped in Narainapur Rural Municipality.


Because branch and distribution canals under both main canals remain unfinished, farmers still cannot access irrigation when they need it.


Sikta Water Users Committee Chairman Shalik Ram Dangi said political instability, frequent changes in project leadership and irregular budget allocation slowed progress. He said every new minister appointed a new project director, while funding and implementation often failed to match plans.


The western canal also faces serious engineering problems. It passes through soluble soil between Balapur and Dhakeri, causing repeated collapses because soil testing was not completed before construction. Vegetation has further weakened the canal, leaving engineers reluctant to operate it at full capacity. Officials remain undecided on whether to repair or rebuild the damaged section.


During a recent visit, Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha inspected only a few locations and did not examine the deteriorating western canal. Previous prime ministers, ministers and senior officials also carried out inspections without resolving the project's long-standing problems. Parliamentary committees, the anti-graft body and the National Vigilance Centre have repeatedly investigated the project following repeated canal failures.


Project chief says work has picked up


Project Director Raju Acharya said construction has gained momentum in recent years and expressed confidence that the remaining work can be completed within the next four to five years if progress continues at the current pace.


According to him, the project has achieved 50.5 percent physical progress and 45.5 percent financial progress. In the current fiscal year alone, around 9.5 kilometers of canals have been built under the Dudhuwa irrigation system, while another 9 kilometers of branch, sub branch and distributary canals have been completed under the western canal. On the eastern side, 9.5 kilometers of branch and distributary canals have also been constructed. The project has also built 7.5 kilometers of embankments to protect irrigated areas and acquired 5.5 hectares of land.


Corruption case pending at Supreme Court


Repeated failures of the western main canal led the Commission for the Investigation of Abuse of Authority, CIAA, to file a corruption case worth Rs 8.5 billion against former project directors, officials, contractors and consultants.


The case accused former minister Bikram Pandey and his company, CTCE Kalika JV, of corruption during construction of the western canal. Filed in 2018, the case sought Rs 2.13 billion in compensation from Pandey. The company had received about Rs 6 billion to build 42 kilometers of the 45-kilometer western main canal. The CIAA also sought two-year prison terms for 21 other defendants.


In June 2022, a Special Court bench cleared Pandey and all other accused. The CIAA has appealed the verdict at the Supreme Court, where the case is still pending.


A dream dating back five decades


The Sikta Irrigation Project was first proposed in a 1975 to 1976 pre-feasibility study for the West Rapti Multipurpose Project. A German consulting firm, with support from the UNDP and the Asian Development Bank, carried out another pre-feasibility study in 1975, followed by a full feasibility study in 1979.


Although the government sought ADB funding, the project stalled because India did not give the required approval. Further feasibility studies were completed in 1983 and again in 2002 with European Union support.


The final study found the project technically and economically viable, estimating a cost of Rs 7.45 billion and a seven-year construction period. Donors, including the European Union, the Saudi Fund for Development, the Kuwait Fund and the OPEC Fund, initially agreed to finance the project but later withdrew their support. The government then decided to build the project with domestic resources. Even now, no one can say when it will finally be completed.

Related Stories
ECONOMY

Project cost to reach about Rs 50 billion

Project cost to reach about Rs 50 billion
Editorial

Immeasurable

Immeasurable
POLITICS

Govt builds integrated agriculture and livestock s...

1636681883_1628386637_agriculture-1200x560_20211128115051.jpg
ECONOMY

1,200 MW Budhigandaki Project: Investment model wo...

budhi-1768704961.webp
ECONOMY

How much does a train cost?

Budhanagar-railway-station.jpg