MCA-Nepal signs contract for new substation construction in Nawalparasi

KATHMANDU: In a significant stride towards enhancing Nepal’s electricity transmission infrastructure, the Millennium Challenge Account-Nepal (MCA-Nepal) has inked a crucial contract for the construction of a new substation in Nawalparasi.

The contract, awarded to Linxon India Pvt Ltd, pertains to the development of the 400kV New Butwal Substation, slated to be erected in Nawalparasi. MCA-Nepal, tasked with implementing MCC projects in the country, anticipates the project’s completion within 39 months.

The signing ceremony, held in Bhumahi, Nawalparasi, garnered attention from key figures, including Kulman Ghising, Managing Director of Nepal Electricity Authority, and Dean R Thompson, the American envoy to Nepal.

Dean R Thompson emphasized the pivotal role of the 400kV New Butwal Substation in bolstering Nepal’s transmission capacity, thus fostering reliable and affordable electricity access for households, facilitating commercial and industrial expansions, and promoting cross-border electricity trading.

Echoing Thompson’s sentiments, Ghising highlighted the substation’s strategic importance, underscoring its potential to significantly augment cross-border energy exchange in the region.

This development aligns with the broader objectives of the Electricity Transmission Project, jointly funded by the Millennium Challenge Corporation (MCC) and the Government of Nepal.

In a proactive move to expedite cross-border power trade, the MCA-Nepal board, chaired by the Ministry of Finance’s secretary, resolved in its March meeting to fast-track the 18km Nepal segment of the New Butwal-Gorakhpur power transmission line.

The collective efforts underscore Nepal’s commitment to fortifying its energy infrastructure, fostering regional cooperation, and meeting the burgeoning energy demands of its populace.