The Millennium Challenge Account Nepal (MCA-Nepal) has signed two major contracts to advance the electricity transmission project under the US-funded Millennium Challenge Corporation (MCC) Nepal compact.
Through a competitive international bidding process, MCA Nepal awarded contracts for the Ratamate-New Damauli transmission line to the Angelique-Skipper JV and the New Damauli-New Butwal line to the Waiba-Salasar JV. The total cost for both projects is US$154.5 million. These contracts cover the design, installation, testing, and ommissioning of 180 km out of the planned 297 km high-voltage transmission line.
The signing ceremony was attended by officials from Nepal’s Finance Ministry, Nepal Electricity Authority, MCC, and the US Embassy. Executive Director at MCA Nepal, Khadga Bahadur Bisht, and representatives from the two companies signed the agreements.
"MCC reaffirms the US commitment to Nepal’s development priorities," said MCC Acting Deputy Vice President John Wingle. "We are honored to collaborate with Nepal to enhance electricity reliability and regional power trade."
Finance Secretary and MCA Nepal Board Chair Ghanashyam Upadhyaya thanked the US for its support and assured continued government cooperation.
Similarly, US Embassy Nepal's Charge' d'Affaires Jason Meeks said the contracts symbolize the US’s lasting commitment to Nepal’s development and long-term growth.
"Today’s agreement reflects America’s enduring commitment to Nepal’s prosperity," said Meeks. "This partnership strengthens infrastructure and accelerates long-term growth."
Executive Director Bisht highlighted the joint effort’s role in national progress, emphasizing sustainable collaboration for successful implementation.
The US$697 million MCC Nepal Compact aims to boost private investment, strengthen infrastructure, and enhance cross-border energy trade and transport networks.
Recently reactivated after a bilateral review, the Compact underscores both governments’ commitment to transformative infrastructure projects in Nepal.
MCC, established in 2004, provides time-bound grants to countries meeting governance and anti-corruption standards. MCA Nepal, formed in 2018, oversees Compact project implementation in the Himalayan nation.
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