MCC Nepal compact program faces setback as transmission line construction contract lingers

KATHMANDU: Two months following the termination of the transmission line construction contract associated with the prominent US aid initiative, the Millennium Challenge Corporation (MCC) project, the initiation of the new contract process has yet to commence.

The contract cancellation transpired subsequent to the submission of proposals by the Millennium Challenge Account Nepal (MCA-Nepal) Development Committee on October 13, which were nearly 66 percent higher than the initially estimated cost.

The estimated cost for the construction of 315 double circuit kilometers of transmission line under the project was US $226 million.

The delay in commencing the new contract process has raised concerns about potential impediments to the MCC project. With the project having been underway for five years since August 30, there exists a crucial condition stipulating its completion within this timeframe.

Apprehensions persist that, should the new contract process encounter further delays, the construction of the MCC project may not meet the specified deadline, mirroring challenges experienced by other projects.

Addressing the situation, the MCA-Nepal Development Committee issued a press release urging the Ministry of Finance, MCC, and its management to facilitate a successful rebidding of the transmission line infrastructure construction work as part of the MCC Nepal Compact Program’s power transmission project.

In a statement, MCA-Nepal emphasized its commitment to transparency and financial responsibility, disclosing detailed guidelines for the procurement process and criteria, along with the results of the recent transmission line procurement process.

The organization affirmed its collaboration with the Ministry of Finance, its Board of Directors, and MCC to navigate the intricate technical, social responsibility, and legal aspects of retendering. MCA-Nepal expressed its dedication to expediting the procurement process while adhering to MCC’s environmental and social standards.

Assuring the public of their commitment, MCA-Nepal pledged to keep stakeholders informed about the next steps once decisions are finalized.