The Millennium Challenge Account Nepal (MCA-Nepal) has relaunched the bidding process for the construction of a 297 km power transmission line, a key component of the US-funded Millennium Challenge Corporation (MCC) Nepal Compact.
The MCA Nepal, in a press statement on Wednesday, said that this project will enhance Nepal's power transmission network.
According to the statement, bids for the project will be accepted until January 30, 2025. The transmission line construction is divided into three segments: Lapsiphedi-Ratmate-New Hetauda, Ratmate-New Damauli, and New Damauli-New Butwal.
The relaunch follows a detailed review of the initial bidding process, with several key improvements. These include design optimizations, better access to tower locations, and updated commercial terms based on feedback from potential bidders.
“These changes are intended to address the major cost drivers identified in the initial proposals, ensuring more feasible and cost-effective submissions,” the release said.
MCA-Nepal also noted that on August 30, 2024, it awarded a USD 12.36 million contract to Transrail Lighting Ltd for the construction of the 18 km Nepal portion of the Butwal-Gorakhpur transmission line. “This segment is expected to be completed within 21 months”.
“We are confident that the redesigned requirements for the remaining 297 km segment will attract strong market interest and competitive bids,” said Khadga Bahadur Bisht, Executive Director of MCA-Nepal, in the statement.
According to the MCA Nepal, the relaunch of the bidding process marks another significant milestone for the MCC Nepal Compact, which has already seen considerable progress over the past year.
“Construction is underway on three 400 kV substations and the 18 km transmission line, with MCA-Nepal on track to complete the remaining segments,” Bisht further said.
The statement added that the MCA-Nepal is committed to the successful implementation of this procurement and the construction of the transmission line, ensuring compliance with the environmental and social standards set by both the government of Nepal and the MCC.
The projects under the MCC Nepal Compact are required to be completed within five years of the compact’s activation in the final week of August 2024.
Nepal's Parliament ratified the MCC compact in February 2022, following an agreement between the Government of Nepal and MCC in 2017. The signing of the compact opened the door for a USD 500 million grant from the United States in Nepal's power and transport infrastructure, with an additional USD 197 million contribution from the Government of Nepal.
