MCA-Nepal Relaunches Bids for 297-Kilometer Power Transmission Line Construction

The Millennium Challenge Account Nepal (MCA-Nepal) has reopened bidding for the construction of a 297-kilometer power transmission line under the Millennium Challenge Corporation (MCC) Nepal Compact. This project aims to enhance Nepal’s electricity transmission network, addressing the country’s growing energy demands and fostering regional energy trade.

According to an MCA-Nepal press release, the bid submission deadline has been set for January 30, 2025. The construction has been divided into three segments:

1. Lapsiphedi-Ratmate-New Hetauda
2. Ratmate-New Damauli
3. New Damauli-New Butwal

Refinements in the Relaunched Bidding Process

The relaunch follows a detailed review of the previous bidding process, incorporating feedback from bidders to address cost drivers and enhance feasibility. The updated process includes design optimizations, better access to tower locations, and improved commercial terms to attract competitive proposals.

This follows MCA-Nepal’s recent success in awarding a $12.36 million contract to Transrail Lighting Ltd. on August 30, 2024, for the construction of an 18-kilometer section of the Butwal-Gorakhpur transmission line. This segment, expected to be completed within 21 months, represents a critical link in cross-border energy trade between Nepal and India.

“After securing the contract for the 18 km segment, we are confident that the redesigned requirements for the remaining 297 km will attract strong market interest and competitive bids,” said Khadga Bahadur Bisht, Executive Director of MCA-Nepal.

Advancing Nepal’s Energy Infrastructure

The relaunch signifies another milestone for the MCC Nepal Compact, which has shown steady progress over the past year. Construction is already underway for three 400 kV substations and the 18-kilometer transmission line. The remaining segments, once implemented, will further reinforce Nepal’s energy infrastructure.

MCA-Nepal reiterated its commitment to ensuring the project’s success while adhering to the environmental and social standards of both the Government of Nepal and the Millennium Challenge Corporation (MCC).

The initiative underlines Nepal’s push toward reliable energy infrastructure, setting the stage for greater energy security and regional collaboration.