Nepal, Bardiya, April 22: The Babai Irrigation Project has nearly doubled in cost due to prolonged construction delays, with the estimated budget rising from Rs. 16.43 billion to around Rs. 33.19 billion.
Although initial studies for the project began in 1967, it remains incomplete as of 2025. Cost escalation has been driven by time overruns, design revisions, flood damage, and financial management challenges.
The project aims to irrigate about 36,000 hectares of land in Bardiya district, boosting agricultural productivity. Earlier assessments had projected irrigation coverage of around 40,000 hectares, later revised downward.
In the first phase, a dam was constructed in 1992 at a cost of Rs. 679.5 million, followed by a 5.5-kilometre main canal that currently serves about 4,000 hectares.
The second phase included construction of siphons and link canals, but flood damage in 2014 forced reconstruction, further delaying progress and increasing costs.
According to the 2018 master plan, the project is now targeted for completion within the fiscal year 2025/26. Project Director Gopal Sharma said over Rs. 12.28 billion has already been spent.
Significant work remains, including 91 km of main canals—34 km on the eastern side and 41 km on the western side—as well as 313 km of branch, sub-branch, and tertiary canals, along with supporting infrastructure such as drainage systems and service roads.
The related Bheri–Babai Diversion Multipurpose Project aims to divert water from the Bheri River into the Babai River to irrigate 51,000 hectares in Bardiya and Banke districts, while also generating 48 MW of electricity.
Persistent delays in such national pride projects have led to repeated cost overruns. Similar trends have been seen in projects like the Rani Jamara–Kulariya Irrigation Project, Sunkoshi–Marin Diversion Project, and Mahakali Irrigation Project.
Stakeholders warn that such delays not only postpone returns on public investment but also weaken the efficient use of taxpayers’ money. Nepal