Significant Progress Marked in First Year of MCC Nepal Compact Implementation

In the first year of implementing the Millennium Challenge Corporation (MCC) Nepal Compact, notable achievements have been made, according to an update shared at a news conference on Wednesday. The event, held to mark the one-year milestone, highlighted the progress of various key components of the project.

Khadga Bahadur Bisht, Executive Director of Millennium Challenge Account (MCA) Nepal, announced that the contractor for the 18-km cross-border transmission line segment has been selected and will be awarded by the end of August 2024. He also noted that significant progress has been made in preparing sites for contractor access.

In addition, MCA-Nepal is set to retender this year for the construction of a 297-kilometer transmission line. Contracts worth approximately $126 million were awarded between May and July 2024 for the construction of three 400 kV GIS substations in Nawalparasi West, Nuwakot, and Tanahu. Among these, the New Damauli and Ratmate substations, each with a capacity of 1000 MVA, will be the largest in Nepal.

Further developments include a $1.2 million contract signed on July 22, 2024, to provide advisory support to the Electricity Regulatory Commission, and a $2.4 million contract signed on July 15, 2024, for consultancy services aimed at enhancing electricity use through Municipal Energy Plans and capacity building under the MCA Partnership Program.

The MCC also reported that the Initial Environmental Examination (IEE) for road maintenance on a 40-km segment of the East-West Highway has been approved, with plans to commence procurement using Full Depth Reclamation (FDR) technology later this year.

Additionally, a two-year, $1 million Livelihood Restoration Program for 270 project-affected people in Ratmate Substation concluded on May 30, 2024, laying the groundwork for new businesses and economic growth. Compensation Fixation Committees have been established in nine districts, with land compensation already determined in Dhading, Makawanpur, and Nawalparasi West. Forest census work is nearly complete in nine out of ten project-affected districts.

Resident Country Director of MCC in Nepal, Diane Francisco, expressed optimism about completing the project on time, praising the Nepal government’s efforts to facilitate progress. US Ambassador to Nepal, Dean Thompson, also commended the cooperation of all stakeholders, emphasizing the project’s significance in addressing poverty and other challenges in Nepal.