MCA-Nepal signs contract for 18 km cross-border power transmission line to India

Kathmandu, Aug 30: Nepal on Friday signed a USD 12.36 million contract for a critical 18 km cross-border electricity transmission line, a crucial part of the broader Electricity Transmission Project that will deepen energy cooperation with India.

Signed under the Millennium Challenge Corporation (MCC) Nepal Compact, the 18 km transmission line project, with three sub-stations, will help Nepal achieve its domestic power goals and reinforce Nepal’s position in the regional energy market, officials said.

“As MCA-Nepal marks the first anniversary of the Compact’s Entry-Into-Force, this new milestone reflects the unwavering commitment from all stakeholders to enhancing regional energy trade between Nepal and India,” read a statement by the Millennium Challenge Account (MCA) Nepal.

The Millennium Challenge Corporation (MCC) Nepal Compact is jointly funded by the government of Nepal and the US government. The MCC was created by the US Congress in January 2004 with strong bipartisan support.

The contract, amounting to USD 12.36 million, has been awarded to Transrail Lighting Ltd, entrusted to construct the transmission line from the 400 kV New Butwal Substation in Nawalparasi Bardaghat Susta West to the Nepal-India border, the MCA Nepal said. The contract was inked by Khadga Bahadur Bisht, executive director of MCA-Nepal, and Amol Wankhede, representative of Transrail Lighting Ltd at the signing ceremony witnessed by the officials from the Ministry of Finance, National Electricity Authority (NEA), MCC and MCA-Nepal.

“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,” Dr Ram Prasad Ghimire, Secretary, Ministry of Finance, said.

“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,” said Kul Man Ghising, Managing Director at NEA.

“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,” said Diane L Francisco, MCC Resident Country Director.