Senior officials from the Millennium Challenge Account-Nepal (MCA-Nepal) have reaffirmed their commitment to completing the cross-border electricity transmission and road maintenance projects, funded by a $500 million grant from the U.S. government, within the designated five-year timeframe.

During a press briefing in Kathmandu marking the first anniversary of the MCC Nepal Compact's implementation, officials highlighted the growing momentum of the projects despite initial challenges. Contracts for three substations have already been awarded, and earlier this month, a contractor was selected for the 18-kilometer border transmission line.

Resident Country Director of MCC, Diane L. Francisco, praised MCA-Nepal's diverse board, which includes representatives from the civil society, the private sector, and various government agencies, for its leadership in driving progress. "Thanks to the dedication of MCA-Nepal, we are on track to write a new success story here in Nepal," Francisco stated.

She also noted significant milestones achieved in the past year, including the signing of contracts for substations, technical support provided to the Electricity Regulatory Authority, and the advancement of environmental permits and land acquisition processes.

US Ambassador to Nepal, Dean R. Thompson, expressed optimism and enthusiasm for the project, emphasizing the U.S. government's long-standing commitment to bringing meaningful changes to Nepal.

In addition to the $ 500 million grant from the MCC, the Government of Nepal (GON) has also injected $197 million to execute the MCA-Nepal projects.

MCA-Nepal's Chief Executive Director, Khadga Bahadur Bisht, detailed the progress, including the awarding of contracts worth approximately $126 million for three 400 kV GIS substations in Nawalparasi West, Nuwakot, and Tanahun. The two largest substations, New Damauli and Ratmate, will each have a capacity of 1000 MVA.

Bisht also highlighted the completion of a two-year $1 million Livelihood Restoration Program which provided training to 270 individuals affected by the Ratmate Substation project. The two-year program provided training in high-value agriculture, vocational skills, and financial literacy.

The contractor for the 18 km cross-border transmission line has been selected and will be awarded by the end of August 2024. Supervision engineers are on board for overseeing construction and assisting MCA-Nepal in re-launching procurement for the remaining 297 km transmission line later this year, the MCA-Nepal officials said.

Looking ahead, Bisht outlined goals for the second year, including signing the contract for the remaining 297 kilometer transmission line, advancing construction, finalizing land compensation rates, and commencing road maintenance projects.

The MCA officials informed that compensation fixation committees (CFC) led by chief district officers have been established to determine land rates for tower pads across nine districts. MCA-Nepal has already fixed land rates in Dhading, Makwanpur, and Nawalparasi West, with plans to complete land acquisition in Kathmandu by the end of this fiscal year.

In terms of clearing forest to expand the transmission line, census work has been completed in nine districts and MCA-Nepal is currently verifying data to apply for permits to remove approximately 47,000 trees for the transmission line. They plan to plant at least 10 trees for every tree cut down.

Additionally, MCA-Nepal has signed contracts for technical assistance in the power sector and for enhancing electricity use under the MCA Partnership Program.

The MCC Nepal Compact also aims to improve road maintenance practices using sustainable and climate-smart technologies. The Initial Environmental Examination (IEE) Report for a 40 km segment of the East-West Highway has been approved, and procurement for road maintenance will begin later this year, utilizing Full Depth Reclamation (FDR) and Superpave technologies, according to officials.