Kathmandu: The Millennium Challenge Corporation (MCC) Nepal Compact has officially signed a contract for an 18-kilometer cross-border electricity transmission line, a crucial element of the Electricity Transmission Project funded by the US and Nepal governments. The contract, worth USD 12.36 million, was awarded to Transrail Lighting Ltd and involves constructing the line from the 400 kV New Butwal Substation in Nawalparasi to the Nepal-India border. The project is slated for completion within 21 months.
The signing ceremony, held on the first anniversary of the MCC-Nepal Compact’s Entry-Into-Force, featured Khadga Bahadur Bisht, executive director of MCA-Nepal, and Amol Wankhede from Transrail Lighting Ltd. Attendees included officials from the Ministry of Finance, Nepal Electricity Authority (NEA), and MCC.
Dr. Ram Prasad Ghimire, secretary of the Ministry of Finance and MCA-Nepal Board Chair, highlighted the importance of the project in advancing Nepal’s domestic power goals and enhancing regional energy trade. NEA Managing Director Kulman Ghising emphasized that the line represents a critical link in Nepal’s energy infrastructure and cross-border cooperation with India.
Diane L Francisco, MCC Resident Country Director, noted that the project is a significant milestone in transforming Nepal’s energy sector and sets the stage for a larger 297-km transmission line project. MCA-Nepal plans to launch the bid for the remaining 297 km by the end of the year.