The Millennium Challenge Corporation (MCC) Nepal Compact has signed a contract for an 18-kilometer cross-border electricity transmission line, a key component of the broader Electricity Transmission Project funded by the Government of Nepal and the US Government.

Marking the one-year anniversary of the Compact's Entry-Into-Force, this milestone demonstrates the strong commitment of all stakeholders to enhancing regional energy trade between Nepal and India, according to MCA-Nepal.

The contract, valued at USD 12.36 million, has been awarded to Transrail Lighting Ltd, which will construct the transmission line from the 400 kV New Butwal Substation in Nawalparasi (Bardhaghat Susta West) to the Nepal-India border. The project is expected to be completed within 21 months.

The contract was signed by Khadga Bahadur Bisht, executive director of MCA-Nepal, and Amol Wankhede, a representative of Transrail Lighting Ltd, in the presence of officials from the Ministry of Finance, Nepal Electricity Authority (NEA), MCC, and MCA-Nepal.

Dr Ram Prasad Ghimire, secretary of the Ministry of Finance and MCA-Nepal Board Chair, stated, “Along with the signing of the three substation contracts worth USD 126 million, this 18-km transmission line project is set to play an important role in helping Nepal make strides in achieving its domestic power goals and reinforcing Nepal’s position in the regional energy market.”

Kulman Ghising, managing director of NEA, commented, “This 18-km segment is not just a construction project; it’s a critical link that will enhance Nepal’s energy infrastructure and deepen our cross-border energy cooperation with India. This accomplishment is a testament to the strategic foresight and dedication of all involved.”

During the signing ceremony, Diane L Francisco, MCC Resident Country Director, said, “The successful contracting of the 18-km cross-border transmission line marks a major milestone in our shared journey to transform Nepal’s energy landscape and economic future. This achievement is one of many successes of the MCC Nepal Compact in the past year, but it is particularly significant as it paves the way for the larger 297-km transmission line project.”

Khadga Bahadur Bisht, Executive Director of MCA-Nepal, added, “As we celebrate the first anniversary of the MCC-Nepal Compact, this contract signing is a clear indicator of the progress we are making.”

The 18-km cross-border segment, separated from the larger project to expedite its completion, underscores the Government of Nepal’s commitment to meeting the project goals of this National Pride Project and reaffirms that collaborative effort from all stakeholders leads to a successful outcome, Bisht noted.

For the remaining 297 km of the transmission line, MCA-Nepal’s preparations are on track to launch the bid before the end of this year, according to MCA-Nepal.