It was a great challenge for the government to implement the Arun III hydroelectric project of Sankhuwasabha, which was proposed to be built in the 50s with the help of loans and grants from donor agencies. Especially, the issue of World Bank loan assistance, environmental study report, compensation amount for local residents, road construction and other issues had been heating up the road and the house for two years.

Under the leadership of UML, the Left was on the front line and was lobbying for Arun's disadvantages. UML and campaigners debated Arun on the streets and in the House. National and international organizations were opposing Arun by raising 'issues' regarding the compensation of locals and environmental impact. Some people said that big projects are not in the interest of Nepal, while others argued that Nepal will sink due to World Bank loans. If the project is implemented, the idea that nationalism will be in danger was also heard on the streets. 

The government proposed the construction of 201 megawatt capacity projects in the first phase and 201 megawatt capacity in the second phase. The first phase was estimated to cost 764.7 million US dollars . Similarly, it was estimated that 479.5 million US dollars will be spent for the second phase of the project. Due to the continued protests everywhere, there was a huge challenge in the implementation of the project. 

When about five and a half hundred megawatts of electricity were being produced in the country, the government had introduced the Electricity Development Policy 2049 for the construction of electricity projects with the investment of the private sector. According to the same policy, an agreement to build the 60 MW Khimti Power Project was also made. The situation was not easy because Arun's subject has been in dispute for a long time . Some campaigners also put forward the argument that the head of Arun is in Tibet and it will be difficult to operate the Arun project as the Tibetan government is going to make a big irrigation plan in that place. 

On behalf of the government, Water Resources Minister Laxman Ghimire, while speaking on a matter of public importance in the National Assembly meeting on 24th Chait 2050, said that irresponsible activities will ultimately have a negative impact on us and development will stop . He said that the project was necessary for the country and insisted on its construction. Ghimire's argument was, 'It will be a misfortune for the country if the Arun-3 project, which has been brought to this state through hard work, cannot be implemented due to the dispute between us.' 

Ghimire had said that he was trying to build the project to meet his own electricity demand and not for the purpose of exporting electricity. He said that the construction of the project will help in the local development and the development of the markets by the road construction.