Major step forward for Nepal–US funded electricity transmission project
The Millennium Challenge Corporation (MCC) Nepal Compact has been officially reactivated, following the successful completion of a United States government review of foreign assistance. The move comes with renewed energy and a shared commitment to advancing one of Nepal’s most significant infrastructure initiatives.
Millennium Challenge Account Nepal (MCA-Nepal) today signed two major agreements to push forward the Compact’s electricity transmission project, jointly funded by the governments of Nepal and the United States.
MCA-Nepal stated that the signing of these agreements confirms both governments’ commitment to the successful delivery of the MCC Nepal Compact, which remains one of the key infrastructure partnerships currently underway in the country.
Following a competitive international tender process, MCA-Nepal awarded the construction contract for the Ratamate–New Damauli transmission line to the Angelic Sciper Joint Venture, and the New Damauli–New Butwal transmission line to the Waiba Salasar Joint Venture.
The agreements, worth a combined USD 154.5 million, cover the design, installation, testing and operation of 180 kilometres of 400 kV transmission lines.
The signing ceremony was attended by officials from the Ministry of Finance, the Nepal Electricity Authority, MCC’s Acting Vice President, representatives of the MCC Resident Country Mission, and the United States Embassy. MCA-Nepal’s Executive Director, Mr Khadga Bahadur Bista, and representatives of the two contracting companies signed on behalf of their respective organisations.
“By signing these agreements, the MCC has reaffirmed the United States’ support for Nepal’s development goals and our shared priorities,” said MCC Acting Vice President Jon Bingle. “We are proud to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal, while also enhancing regional electricity trade and interconnection.”
Executive Director Khadga Bahadur Bista added that every effort would be made to complete the projects on schedule.
The Government of Nepal established MCA-Nepal on 18 April 2018 (Baisakh 5, 2075 BS) under the Development Committee Act 2013, as the agency responsible for delivering the jointly funded programme under the MCC Nepal Compact.