The Millennium Challenge Account Nepal (MCA-Nepal) awarded a contract to Linxon India Pvt. Ltd. for the construction of the 400-KV Butwal Substation in Nawalparasi district (Bardaghat Susta West), Lumbini Province.
The contract for the substation was signed between MCA-Nepal and Linxon India Pvt. Ltd amidst a program today. After signing the contract with the Indian company on behalf of the Nepal government at a program today, Managing Director of Nepal Electricity Authority, Kulman Ghising, said the construction of the substation will be completed in the next 39 months. “The construction of 400-KV substation will be completed in the next 39 months and is expected to help boost the cross border power trade,” said Ghising.
Aside from Ghising, American Ambassador to Nepal Dean R. Thompson, local authorities including the District CDO, MCA-Nepal Board members, officials from MCC and MCA-Nepal and elected people’s representatives were present during the function.
Addressing the function, American Ambassador Thompson said the US government remains committed to assure Nepal that the Millennium Challenge Corporation (MCC) compact is instrumental in meeting the power needs of the Himalayn nation.
“The New Butwal Substation will improve Nepal’s transmission capacity, contributing to reliable and affordable electricity for Nepali households, Nepali commercial and industrial enterprises, and Nepal’s cross border electricity trading,” said Mr Thompson, “The MCC-Nepal Compact will be great for Nepal’s roads, electricity, and future!”
Also speaking on the occasion, MCA Nepal Executive Director, Khadka Bahadur Bisht, said the government agency has been expediting all the construction works of transmission lines and substations in the course of implementing the MCC Nepal compact. “We're nearing completion of the procurement process to finalize the contract for building the two remaining substations,” he said.
MCA-Nepal is constructing one substation each at Ratmate in Nuwakot district and Damauli in Tanahun district as part of the electricity transmission project which received financial support from the MCC and the Government of Nepal.
The MCA-Nepal board chaired by the secretary at the Ministry of Finance, in a meeting held in March, decided to advance the 18-km portion of the new Butwal-Gorkhapur power transmission line to facilitate the initiation of cross-border power trade as outlined in the agreement with India.
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