The minority UML government was unable to reach a decision on whether to take a loan from the World Bank or not and whether to proceed with the Arun project in its current form. The 402-megawatt project, which was proposed by the Congress-led government after the 2048 election, was proposed to be built in two phases. It was estimated that an investment of Rs 38 billion would be required for that. Discussions were underway on a proposal for the World Bank to invest in the construction of the country's largest and most talked-about power project.

After the mid-term elections, the minority UML government formed in 2051 Mangesh was confused about whether to make Arun a loan from the World Bank or not. As the main opposition party, UML had directly supported the anti-Arun activities. But when UML came to the leadership of the government, it seemed to be in a difficult situation about how to move forward. The World Bank had asked the UML government to send a written answer whether to take the loan or not.

In the House of Representatives after the mid-term elections, parties including the Congress and the Rastriya Prajatantra Party were in favor of Arun. Former Vice Chairman of the National Planning Commission and Congress MP Dr. Ram Sharan Mahat had presented a proposal of public importance in Parliament regarding Arun. The government was not able to express a clear opinion on the World Bank loan that was under discussion in Parliament.

Speaking in the House of Representatives meeting on 25 Poush 2051, Prime Minister Manmohan Adhikari had said that a decision on Arun would be taken only after a Nepali delegation led by Water Resources Minister Hari Prasad Pandey visited the World Bank for talks. He had also said that there was a plan to take Arun forward only with national consensus. The opposition parties were protesting the delay in the government's decision. He had said that action would be taken against the culprits based on the decision made by the Accounts Committee regarding irregularities in the former Royal Nepal Airlines Corporation. Adhikari had also expressed the view that all parties should be united in foreign policy.

In the National Assembly, Congress MP Mahesh Acharya had sought an answer from the government on the implementation of Arun. Responding to Acharya's question, Water Resources Minister Pandey had clarified that he had no negative feelings towards Arun. Minister Pandey had said that a final decision would be reached after discussing the issue of Arun in the National Assembly as well. At a time when the World Bank was urging the government to make a quick decision, the UML-led government's stance was not clear. In particular, the UML, along with national/international social organizations, was adamant that a loan from the World Bank should not be taken to build Arun.

UML had been putting forward agendas such as the fact that building Arun with a World Bank loan would increase the production cost per megawatt, damage the local environment, and prevent the economic activities of those affected by the cost from being viable. After leading the government, the UML had an understanding that if Arun were canceled while attracting foreign investment, it would be difficult to bring in additional investment. The parties, including the main opposition, were lobbying the minority government on the agenda of building Arun.

In this context, Prime Minister Adhikari had informed the House of Representatives that a decision on Arun would be taken only after holding discussions with the World Bank under the leadership of Water Resources Minister Pandey. The UML government was particularly confused about Arun.  Covering these issues, Kantipur Daily published a news on 2051 Poush 25 under the headline 'High-level delegation to visit World Bank for talks on Arun-3'.