In the 1950s, the problem of electricity supply was extreme in the country. The then Prime Minister Girija Prasad Koirala used to say that the overall development of the country was affected due to lack of electricity supply. He had been saying that electricity supply should be increased even if it is by managing multi-fuel diesel plants and thermal plants for industrialization.

Even from the Prime Minister, officials of the Planning Commission, the idea that the lack of electricity has contributed to unemployment and migration has been expressed from time to time. Due to the lack of electricity, the overall development efforts of the country have been affected, so the government has put forward a strategy to allow the private sector to enter the electricity production. 

Arun 3rd and Kaligandaki project and private level Jhimruk and Khimti were tried to advance . The government took a policy of prioritizing economic liberalization to attract the private sector. The then vice-chairman of the National Planning Commission, Ramsharan Mahat, stood in favor of liberalisation. But it was estimated that those projects coming with private investment would have to wait for years to be completed. 

At that time, the government gave priority to the construction of the Arun 3rd hydropower project. Aiming to complete the project quickly, a tender was also made for the construction of Arun. But the support provided by the World Bank for the construction of the project was like confusion.  Arun was running a campaign arguing that

Ekathari should not be made. Non-governmental organizations inside and outside the country seemed to be active saying that the environment would deteriorate by connecting the Arun project. Even though the government had tendered for the construction of structures including roads, the assistance provided by the World Bank was confusing.

The information that the World Bank will decide whether to provide loan assistance only on July 1, 1994. But not only Nepal, the continuous pressure of some foreign organizations increased the confusion of the project. An organization called the International Rivers Network based in Washington was in constant contact with social organizations in Nepal and was reporting on Arun's issues. 

Organizations like Arun Concern Group, Alliance for Energy, Inhured led by Gopal Sivokoti of Nepal were opposing the project. In the report published by the International River Network, it was mentioned that during the construction of 122 km 'access road', 10 thousand workers will deteriorate the environment, 4.5 million tribals will be affected and more than 100 species will be destroyed . There was a consensus of local and foreign organizations. 

Vikas Pandey, a member of the Alliance for Energy, who was said to be opposed to energy projects at that time, warned that the project might backfire. Under their own pressure, the government was being criticized for opening the tender for the project when there was a discussion about whether the World Bank would not give a loan. Also, the World Bank was raising questions about the nature and management of the authority. It was asked to remove the provision that the Minister of Water Resources should be the chairman of the authority's board . The government was ignoring it.