The ongoing construction of the Arun III hydropower project in Sankhuwasabha is progressing well, with the dam, tunnel, and power house all being 70% complete.

The dam is being constructed at Faxinda Dobhan in Makalu rural municipality-5, and excavation of 25.56 million cubic meters is required for its completion, as stated by Arun Dhiman, the CEO of Sutlej Jalvidyut Nigam.

The 11 km tunnel connecting the dam site to the power house has already been opened, and the power house itself is being built in Chichila Rural Municipality-3, Pukhuwa Dobhan. Barring any obstacles, the project is expected to be finished within the next two years.

According to the Project Development Agreement (PDA), local residents will receive shares only after the project is fully completed.

The PDA also outlines that shares will be distributed to locals within one year of the project's commencement of commercial production, and one billion six hundred million rupees will be allocated to them.

In return for the estimated one trillion four billion cost, Nepal will receive 21% of the generated electricity and three trillion 48 rupees in financial benefits under various headings. Directly affected families will receive up to 30 units of electricity per month after the electricity generation.

Furthermore, the PDA specifies that the project will be handed over to the Government of Nepal after 25 years of completion. Sutlej is also making preparations to provide compensation for the construction of 669 MW in Lower Arun as part of the Arun III framework, and Nepal will receive 21% of the electricity generated from both projects.