The World Bank itself was questioned in a complaint filed by four people from the Arun Concern Group, including Gopal Siwakoti 'Chintan' and Ganesh Kumar Ghimire, regarding the Arun III Hydropower Project. The question arose after the investigation report of the complaint filed with the bank's own inspection commission mentioned that investment in Arun-3 should be considered.

The bank had been studying the issue of investing in the power project for seven years. However, the complaint filed in the name of the interest group and the report given by the commission had created a kind of stir. In the report submitted to the bank's director on 1 Poush 2051, it was mentioned that the construction of Arun-3 should be taken into account for the future development of Nepal.

Siwakoti had been campaigning saying that the Arun project should not be built by bringing a loan from the World Bank. The report given by the commission focused the world's attention on the investment and returns made in Arun. The report had suggested that the investment in the project should be reconsidered since the decision had not been made.

The commission's report came at a time when lobbying was being done by the interest group, leftist parties, social organizations and campaigners against the project being built with a loan from the World Bank. Based on the issues raised by the lobbyists, the Commission had questioned the lender World Bank itself regarding the construction of Arun.

Arun's main issues were the right to information, indigenous people, environmental impact assessment, land acquisition and financial options. The Commission had also concluded that these issues had created a dispute. The World Bank was unable to make an immediate decision based on the Commission's suggestions, suggesting that the bank should pay attention to the negative impacts of the project.

The Commission was established a year ago as a body for individuals or communities affected by World Bank-supported projects to file complaints about their rights and interests. The Commission was assigned the task of making recommendations to the bank's executive board based on the necessary investigation into the complaints. The Commission had been busy with Arun's work for four months. The three members of the commission were Ernst Gunther Broda of Germany, Richard Wiesel of the United States, and Álvaro Umada Cuseda of Costa Rica.

The Arun Concern Group, on the other hand, had proposed that the new government should study the report of the commission further and take a decision only after holding a discussion in Parliament. The concern group had demanded that the work done by the previous government (led by Girija Prasad) be studied, investigated, and reviewed and discussed in Parliament. The World Bank mission and the Arun Concern Group had put forward a new proposal when the then main opposition party, UML, which was known as Arun's opponent, came to power. Before UML came to power, national/international organizations, including the Arun Concern Group, were supporting the Siwakoti leadership campaign.

After coming to power, the UML's investigation into Arun began when the responsibilities changed. When the country was limited to producing about 228 megawatts of electricity, the Koirala government had decided to proceed with the 402 megawatt Arun project in two phases. However, the environmental impact of the project on the affected areas, the economic burden on the country, local economic activities, and the issue of taking or not taking a loan from the World Bank were raised from the streets to the parliament.

Concerned groups, NGOs/INGOs, and leftist political parties, especially those formed in its name, were involved in the opposition to the Arun project. Against this backdrop, the Kantipur Daily published a news story titled ‘World Bank defeated in the Arun issue’ on 2051 Poush 6, focusing on the fact that the mission, which is a part of the main loan investor, had raised questions about the bank itself.