$154.4 Million Contracts Signed to Build Two High-Capacity Transmission Lines Under MCC

The Millennium Challenge Account Nepal (MCA-Nepal) has signed contracts worth $154.4 million (around Rs 21.6 billion) for the construction of two high-capacity electricity transmission lines under the Millennium Challenge Corporation (MCC) Nepal Compact, marking the formal reactivation of the US-funded infrastructure programme.

Awarded through a competitive international bidding process, the agreements for the contracts were signed at a ceremony in Kathmandu on Thursday, August 14. MCA-Nepal awarded the Ratmate–New Damauli transmission line contract to the Angelique–Skipper Joint Venture, and the New Damauli–New Butwal line to the Waiba–Salasar Joint Venture.

Senior officials from the Ministry of Finance, Nepal Electricity Authority, MCC, and the US Embassy attended the signing. MCA-Nepal Executive Director Khadga Bahadur Bisht signed on behalf of the project office, alongside representatives from the two contractors.

The contracts, valued at a combined $154.5 million, cover the design, installation, testing, and operation of 180 kilometres of 400 kV transmission lines, a critical component in strengthening Nepal’s power grid and enabling cross-border electricity trade.

“We are proud to work with our Nepali counterparts to improve the availability and reliability of electricity in Nepal, as well as to enhance regional electricity trade and interconnection,” said John Wingle, MCC’s Acting Deputy Vice President for Europe, Asia, Pacific and Latin America.