MCA-Nepal Contracts Indian Company for 400KV Substation Construction

The Millennium Challenge Account Nepal Development Committee (MCA-Nepal) has contracted Techno Electric and Engineering Ltd, an Indian company, for the construction of a 400KV substation at Damauli, Tanahu. The contract is valued at $38.89 million.

This contract marks the finalization of agreements for all three 400KV substations under the MCC Nepal Compact.

Executive Director of MCA-Nepal, Khadga Bahadur Bista, and Trade Director of Techno Electric and Engineering Ltd, Rajiv Agrawal, signed the contract during a function attended by Minister for Energy, Water Resources and Irrigation, Deepak Khadka, and US Ambassador to Nepal, Dean Thompson, in Kathmandu on Wednesday.

Energy Minister Khadka emphasized that the construction of the substation would strengthen Nepal’s electricity distribution system and contribute to the country’s economic prosperity. He urged all stakeholders to ensure the timely completion of the project.

Chair of the MCA-Nepal Board of Directors and Secretary at the Finance Ministry, Dr. Ram Prasad Ghimire, praised the progress of MCA-Nepal in implementing the MCC-Nepal Compact. He highlighted the significance of the substations in expanding Nepal’s energy sector, which is crucial for economic development. Ghimire noted that the substations would boost industrial and trade activities and provide a sustainable power supply.

Ambassador Thompson commended the collaborative efforts of the Nepal government, Finance Ministry, Energy Ministry, NEA, and MCA-Nepal in advancing the project. He underscored the MCC-Nepal Compact’s role in ensuring electricity access, promoting inclusive and sustainable economic development, and contributing to job creation and poverty reduction.

Executive Director Bista celebrated the completion of the contracts for the three substations within a year of the project’s initiation. He emphasized the importance of the Damauli substation for transmitting electricity from Ratmate, Lekhnath, and New Butwal Substations.

The MCC-Nepal Compact provides financial support for constructing the three substations to ensure power supply along a 314-km corridor from Lapsephedi, Kathmandu, to Bardaghat Susta, Nawalparasi, reaching the border with India.