Construction work on the Middle Marsyangdi hydropower project was halted once again after Maoists allegedly blew up a bus belonging to the project on 5 November. The Maoists had issued a public notice two months ago saying that they would not allow construction as long as security forces guarding the site also engaged in search operations in the surrounding areas. The government says the soldiers are guarding dynamite used in construction. An agreement was reportedly reached with the Maoist leadership and construction had resumed this month.

The contractor of the German-funded project, DDC JV, says it can't continue when there is a threat. The Nepal Electricity Authority, which loses Rs 2 million for every day that work is stopped says there is adequate security. DDC JV's original bid for civil works was 77 million euros but extra claims due to delays have already topped 60 million euros.(See: 'Delayed reaction', Nepali Times # 216) The 70 megawatt project was initially going to cost Rs 14 billion of which 85 percent would be borne by a German grant. But given the escalation in the compensation claims by the contractor, the cost of the project to Nepali taxpayers has soared.