The Millennium Challenge Account Nepal (MCA) signed a contract for the construction of an 18 km cross-border electricity transmission line on Friday.

The contract worth $12.36 million (or around Rs 1.66 billion) has been awarded to Transrail Lighting Ltd. to construct the transmission line from the 400 kV New Butwal Substation in Nawalparasi Bardhaghat Susta West to the Nepal-India border within the contract duration of 21 months, according to the statement released by the MCA-Nepal.

Khadga Bahadur Bisht, Executive Director of MCA-Nepal, and Amol Wankhede, representative of Transrail Lighting Ltd. inked the contract. 

Officials from the Ministry of Finance, National Electricity Authority (NEA), MCC and MCA-Nepal were present during the signing ceremony.

Dr. Ram Prasad Ghimire, Secretary at the Ministry of Finance and MCA-Nepal Board Chair said, “Along with the signings of the three substation contracts worth $126 million, this 18 km transmission line project is set to play an important role in helping Nepal make strides in achieving its domestic power goals and reinforcing Nepal’s position in the regional energy market.”
 
Kul Man Ghising, Managing Director at NEA, said that the 18 km segment was not just a construction project but a critical link that would enhance Nepal’s energy infrastructure and deepen the country’s cross-border energy cooperation with India.

“This accomplishment is a testament to the strategic foresight and dedication of all involved,” Ghising said.

Similarly, addressing the signing ceremony, Diane L. Francisco, MCC Resident Country Director, said that the successful contracting of the 18 km cross-border transmission line marked a major milestone in the shared journey to transform Nepal’s energy landscape and economic future.

“This achievement is one of many successes of the MCC Nepal Compact in the past year, but it is particularly significant as it paves the way for the larger 297 km transmission line project,” she said.

MCA-Nepal’s preparations are on track to launch the bid before the end of this year for the construction of the remaining 297 km of transmission line, the statement said.