Government Bans Construction Near MCC Transmission Line Section

The government has banned construction and tree planting within a specified area along the route of a 400 kV transmission line funded by the Millennium Challenge Corporation (MCC), a US international development agency.

According to a notice published in the government in the Nepal Gazette on Thursday, construction and tree planting are banned within a 23-meter radius on both sides of the proposed 33.54-kilometer section of the transmission line, stretching from the New Damauli substation to the Nepal-India border via the New Butwal substation. The restricted area covers a total of 70.596 hectares.

The Millennium Challenge Account (MCA) Nepal, tasked with implementing the project, will need to acquire 1,440 hectares of land to complete the 315-kilometer transmission line under the MCC grant assistance.

MCA Nepal signed a contract worth USD 123.6 million with Transrail Lighting Limited on August 30, 2024 for constructing 18 kilometers of the Butwal-Gorakhpur transmission line within Nepal. A new bidding process was initiated on November 27 for the remaining 297 kilometers, with a submission deadline of January 30, 2025.

The initial bid process for the project was canceled in Asoj (mid-September to mid-October) due to higher-than-expected prices from all bidders. The new bid invites contractors to work on three sections of the transmission line: Lapsiphedi-Ratmate-New Hetauda, Ratmate-New Damauli and New Damauli-New Butwal.

The MCC is contributing a grant of USD 500 million to this project, while Nepal has pledged an additional USD 197 million.

The Nepal Electricity Authority (NEA) has emphasized the project's importance in enabling high-capacity electricity transmission within Nepal and supplying electricity to areas with high demand. The NEA also noted that the project would facilitate electricity trade with India upon completion.