Kathmandu: The Millennium Challenge Account-Nepal (MCA-Nepal) today signed two major contracts to advance the compact’s Electricity Transmission Project, jointly funded by the governments of Nepal and the United States.
According to National News Agency Nepal, following the successful completion of the foreign aid review, the Millennium Challenge Corporation (MCC) Nepal Compact resumed work with renewed momentum and shared commitment from both governments. The development underscores the shared commitment of both governments to delivering on one of Nepal’s most transformative infrastructure partnerships.
After a competitive international bidding process, MCA-Nepal awarded the Lot 2 contract (Ratmate to New Damauli) to Angelique-Skipper JV and the Lot 3 contract (New Damauli to New Butwal) to WAIBA-SALASAR JV. Combined, these contracts are valued at approximately US $154.5 million and will 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 the presence of MCC’s Acting Deputy Vice President, representatives from the MCC Resident Country Mission, officials from the U.S. Embassy, Nepal’s Ministry of Finance, and the Nepal Electricity Authority. Acting Deputy Vice President John Wingle stated that the United States reaffirms its investment in mutual priorities and Nepal’s development goals, emphasizing the improvement of electricity availability and reliability and enhancing regional power trade and integration.
Ghanashyam Upadhyaya, Secretary at the Ministry of Finance and Chairperson of the MCA-Nepal Board of Directors, expressed appreciation for the financial support from the U.S. Government and emphasized the Government of Nepal’s continued support for this program. U.S. Embassy Nepal’s Charg© d’Affaires, Jason Meeks, highlighted the significance of the milestone as a symbol of the United States’ enduring commitment to Nepal’s growth and prosperity.
MCA-Nepal Executive Director Bisht expressed gratitude for the U.S. Government’s support and final approval to move the compact forward, reflecting the shared commitment of all stakeholders and the Government of Nepal. The MCC Nepal Compact represents a $697 million investment in Nepal’s long-term economic development, aimed at boosting connectivity, unlocking economic growth, and strengthening critical infrastructure.