MCA-Nepal Signs $12.36 Million Contract for Cross-Border Electricity Transmission Line Construction

MCA-Nepal has signed a contract for the construction of an 18 km cross-border electricity transmission line, a key element of the broader Electricity Transmission Project under the Millennium Challenge Corporation (MCC) Nepal Compact. This project is funded by the Government of Nepal and the U.S. Government.

Marking the one-year anniversary of the Compact’s Entry-Into-Force, this milestone underscores the strong commitment from all stakeholders to boost regional energy trade between Nepal and India, according to a press note from MCA-Nepal.

The contract, worth USD 12.36 million, has been awarded to Transrail Lighting Ltd., which will construct the transmission line from the 400 kV New Butwal Substation in Nawalparasi Bardhaghat Susta West to the Nepal-India border. The project is expected to be completed within 21 months.

The contract was signed by Mr. Khadga Bahadur Bisht, Executive Director of MCA-Nepal, and Mr. Amol Wankhede, representative of Transrail Lighting Ltd., in the presence of officials from the Ministry of Finance, National Electricity Authority (NEA), MCC, and MCA-Nepal.

Dr. Ram Prasad Ghimire, Secretary of the Ministry of Finance and MCA-Nepal Board Chair, emphasized the importance of this project, stating, “Along with the signing of three substation contracts worth USD 126 million, this 18 km transmission line project will play a crucial role in helping Nepal achieve its domestic power goals and strengthen its position in the regional energy market.”

Mr. Kul Man Ghising, Managing Director of NEA, remarked, “This 18 km segment is not just a construction project; it’s a critical link that will enhance Nepal’s energy infrastructure and deepen our cross-border energy cooperation with India. This accomplishment is a testament to the strategic foresight and dedication of all involved.”

Ms. Diane L. Francisco, MCC Resident Country Director, highlighted the significance of the project, saying, “The successful contracting of the 18 km cross-border transmission line marks a major milestone in our shared journey to transform Nepal’s energy landscape and economic future. This achievement is particularly significant as it paves the way for the larger 297 km transmission line project.”

Mr. Khadga Bahadur Bisht, Executive Director of MCA-Nepal, added, “As we celebrate the first anniversary of the MCC-Nepal Compact, this contract signing is a clear indicator of the progress we are making. The 18 km cross-border segment, separated from the larger project to expedite its completion, shows the Government of Nepal’s commitment to meeting the project goals of this National Pride Project and reaffirms that collaborative efforts from all stakeholders lead to a successful outcome.”