A Chinese firm, China Overseas Engineering Co, won a bid to construct a water diversion tunnel at Sunkoshi river in Nepal with an estimated cost of $85 million. The tunnel is part of the Nepal’s government Sunkoshi Marine Diversion Multipurpose Project and will  help irrigate drought-prone districts in the south-western part of the country. 

The proposed tunnel, with a 13.3 km length and 12-meter high barrage, will divert 67 cusec water from Sukoshi river to Bagmati river. Currently, the low water flow at Bagmati river doesn’t allow irrigation during the peak summer season. 

"We have issued a letter of intent to the lowest bidder. We are expecting to sign the contract next week. Work will begin immediately after the contract is signed,” Project Chief Sushil Acharya was quoted as saying by The Kathmandu Post. "The tunnel has to be completed in 27 months,” he added.

A 28-megawatt hydropower plant was also proposed under the project which is likely to cost $395 million. 

About 122,000 hectares of farmland in Rautahat, Dhanusha, Mahottari, Sarlahi, and Bara districts in the southern plains will be irrigated under this project.

The project will help increase farm production in Nepal. The southern plain region also saw thousands of youth migrating from the region as there are hardly any opportunities there. The migration also affects agricultural production as the region now often reports a shortage of laborers during peak season.