Millennium Challenge Account-Nepal signs USD 154.5 million agreement for electricity transmission project

Kathmandu [Nepal], August 14 : Millennium Challenge Account- Nepal (MCA-Nepal) on Thursday signed two contracts under the MCC Nepal Compact worth USD 154.5 million for the electricity transmission project in the Himalayan nation.

The agreement follows "the successful completion of the foreign aid review," the MCA- Nepal announced in a release.

"Today, the Millennium Challenge Account-Nepal (MCA-Nepal) signed two major contracts to advance the compact's Electricity Transmission Project, jointly funded by the governments of Nepal and the United States. The milestone signals both governments' commitment to delivering on one of Nepal's most transformative infrastructure partnerships," the release added.

As per the release, contracts for the construction of the Ratmate to New Damauli transmission line project have been awarded to Angelique-Skipper JV, and the New Damauli to New Butwal project has been awarded to WAIBA-SALASAR JV, through an international bidding process.

Combined, these contracts are valued at approximately USD 154.5 million and will cover the design, installation, testing, and commissioning of 180 kilometres of high-voltage transmission lines.

The agreements were signed by MCA-Nepal Executive Director Khadga Bahadur Bisht and company representatives in the presence of MCC's Acting Deputy Vice President John Wingle, officials from the MCC resident country mission, the US Embassy, Ministry of Finance, and the Nepal Electricity Authority.

"In signing these contracts, MCC reaffirms the United States' investment in mutual priorities and Nepal's development goals," said Acting Deputy Vice President John Wingle. "We are honoured to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal and enhance regional power trade and integration."

Ghanashyam Upadhyaya, secretary at the Ministry of Finance and Chairperson of the MCA-Nepal Board of Directors, appreciated US financial support to materialise the government's plan to construct transmission lines and substations, and expressed continued backing for the programme.

US Embassy Nepal's Charge d'Affaires Jason Meeks said the contracts symbolise the US's lasting commitment to Nepal's development and long-term growth. "This milestone is more than a construction contract; it's a tangible symbol of the United States' enduring commitment to Nepal's growth and prosperity," he said. "Through this partnership, we are creating power lines and economic infrastructure and accelerating Nepal's long-term growth. The MCC compact is a cornerstone of cooperation between Nepal and the United States. We're proud to be moving forward together to benefit all citizens of Nepal."

MCA-Nepal Executive Director Bisht said that this milestone reflects the shared commitment of all stakeholders and the government of Nepal to this national pride project. "We remain focused on successful implementation through sustained collaboration," he said.

The MCC Nepal Compact represents a USD 697 million investment in Nepal's long-term economic development. The compact aims to boost connectivity, strengthen critical infrastructure, enhance cross-border energy trade, and improve Nepal's transportation network through its electricity transmission and road maintenance projects, laying a foundation for increased private sector investment.

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