U.S. Chargé d’Affaires a.i. Scott Urbom addresses the groundbreaking ceremony for the Dhanakhola–Lamahi Road Rehabilitation Works on Wednesday. (Photo: U.S. Embassy, Nepal)
The US Embassy in Nepal, in collaboration with Millennium Challenge Account-Nepal (MCA-Nepal) and Nepal government officials, officially inaugurated the Dhanakhola–Lamahi Road Rehabilitation Works amidst a ceremony today.
Lumbini Province Chief Minister Chet Narayan Acharya laid the foundation stone this afternoon, to formally launch the road rehabilitation work. The project is being implemented through MCA-Nepal.
The ceremony marks a major implementation milestone for the MCC Nepal Compact, a massive infrastructure initiative designed to modernize the country’s road networks and power infrastructure. The upgrade will introduce advanced construction technologies, including Full Depth Reclamation (FDR) and Superpave asphalt.
The broader project represents a $747 million joint investment, consisting of $550 million from the U.S. Millennium Challenge Corporation (MCC) and $197 million from the Government of Nepal.
Speaking at the event, US Chargé d’Affaires a.i. Scott Urbom emphasized that the groundbreaking was a testament to the enduring ties between the two nations.
"This project represents much more than a single investment," Urbom said. "It is a milestone that reflects the strength of our bilateral relationship and our shared commitment to delivering tangible results for the people of Nepal and American businesses working here through the Compact."
The project aims to lower transportation costs and enhance regional connectivity. Beyond road maintenance, the MCC Compact also focuses on electricity transmission to improve energy reliability and support cross-border power trade.
Officials shared that the collaboration is expected to drive long-term economic growth, creating new opportunities for both Nepali citizens and American businesses operating within the region.
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