Kathmandu: Millennium Challenge Account Nepal (MCA-Nepal) has signed the contract for the construction of the final 117-kilometer segment of the electricity transmission line project of the Millennium Challenge Corporation (MCC) Nepal Compact, completing the award of all contracts for the construction of the full 315-kilometer transmission line under the compact. This marks a major milestone in the progress of Compact implementation.
The contract was signed with Ashish–Bozlar JV for the construction of the transmission line from Lapsiphedi Substation in Kathmandu district to Ratmate Substation in Nuwakot district and then onwards to New Hetauda Substation in Makwanpur district, an MCA-Nepal statement reads.
Following an international competitive bidding process, MCA-Nepal awarded the contract, valued at approximately USD 76.65 million. The project includes the design, installation, testing, and commissioning of 400 kV transmission lines. The contractor is expected to complete the work within a contract period of 42 months.
Khadga Bahadur Bisht, Executive Director of MCA-Nepal, and Nirman Gauli, the representative of Ashish–Bozlar JV, signed the contract in the presence of officials from MCC and MCA-Nepal.
Speaking at the signing ceremony, Diane L. Francisco, MCC Resident Country Director, said, “The signing of this contract represents a wonderful milestone in the implementation of the Nepal Compact. This accomplishment is the result of the profound commitment and dedication of the MCA to the successful completion of this critical transmission line and its promise for the future development and prosperity of the Nepali people.”
Bisht added, “MCA-Nepal has achieved a significant milestone in the implementation of the MCC Nepal Compact by signing this contract with Ashish–Bozlar JV today. It is a major achievement that all contracts for transmission line construction under the Electricity Transmission Project have now been awarded.”
Previously, MCA-Nepal had awarded contracts for the construction of a 198-kilometer transmission line, covering the sections from Ratmate Substation in Nuwakot district to New Damauli Substation in Tanahu district, and then onwards to New Butwal Substation in Nawalparasi (Bardaghart Susta West) district, with a final interconnection to the Nepal–India border with an 18-kilometer segment. In addition, contracts have also been awarded for the construction of the Ratmate, New Damauli, and New Butwal substations.
The MCC Nepal Compact represents a landmark investment of $697 million in Nepal’s long-term economic development, laying the foundation for increased private sector investment. Through its Electricity Transmission and Road Maintenance Projects, the Compact aims to enhance connectivity and stimulate economic growth by strengthening critical infrastructure, facilitating cross-border energy trade, and improving Nepal’s transportation network.
