Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Millennium Challenge Account-Nepal (MCA-Nepal) has resumed its Electricity Transmission Project with renewed momentum after the recent foreign aid review, signing two major contracts worth a combined US $154.5 million. Jointly funded by the governments of Nepal and the United States under the Millennium Challenge Corporation (MCC) Nepal Compact, the agreements mark a significant step toward one of Nepal’s most transformative infrastructure initiatives.
Following a competitive international bidding process, MCA-Nepal awarded:
Lot 2 (Ratmate–New Damauli) to Angelique-Skipper JV
Lot 3 (New Damauli–New Butwal) to WAIBA-SALASAR JV
The contracts cover the design, installation, testing, and commissioning of 180 kilometers of high-voltage transmission lines. MCA-Nepal Executive Director Khadga Bahadur Bisht and company representatives signed the agreements in Kathmandu, witnessed by MCC’s Acting Deputy Vice President, U.S. Embassy officials, the Ministry of Finance, Nepal Electricity Authority representatives, and members of the MCC Resident Country Mission.
“MCC reaffirms the United States’ investment in mutual priorities and Nepal’s development goals,” said MCC Acting Deputy Vice President John Wingle, highlighting the project’s role in boosting electricity reliability and regional power trade.
Finance Secretary and MCA-Nepal Board Chair Ghanashyam Upadhyaya thanked the U.S. government for supporting Nepal’s transmission line and substation plans, pledging continued backing for the program.
U.S. Embassy Chargé d’Affaires Jason Meeks called the milestone “a tangible symbol of the United States’ enduring commitment to Nepal’s growth and prosperity,” adding that the compact accelerates long-term economic growth while strengthening bilateral ties.
Bisht emphasized the project’s status as a National Pride Project and credited sustained collaboration for its progress: “We appreciate the U.S. government’s unwavering support and final approval to move the compact forward.”
The MCC Nepal Compact represents a $697 million investment in Nepal’s infrastructure, with the Electricity Transmission and Road Maintenance Projects aimed at improving connectivity, enabling cross-border energy trade, and creating a stronger foundation for private sector investment.
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