Prime Minister's Secretariat Cancels Sun Koshi-Marin Diversion Project Contract Amidst Controversy

Summary

The Prime Minister’s Secretariat has cancelled the Sun Koshi-Marin Diversion Multipurpose Project contract, triggering allegations of legal abuse and political interference. Procurement experts say the cancellation relies on a weak legal basis and could be overturned in court.

Key Points
  • The contract for the Sun Koshi-Marin Diversion Multipurpose Project was cancelled after Prime Minister Balendra Shah’s secretariat intervened in the procurement process.
  • Legal experts say the cancellation was based on the wrong section of the Public Procurement Act and may not survive a court challenge.
  • Officials and experts argue that Section 26 of the Act, not Section 3, should have been used if the procurement process was to be cancelled.
  • The controversy is linked to wider political maneuvering over control of the Irrigation Department and major development budgets.
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