Though it took a long, Millennium Challenge Account-Nepal (MCA-Nepal) has awarded and signed a contract with Linxon India Pvt Ltd for the construction of the 400 kV New Butwal Substation in Nawalparasi (Bardaghat Susta West) district in Lumbini Province.
In a milestone achievement, the 400 kV Gas Insulated Switchgear (GIS) substation will be constructed within the contract duration of 39 months, according to a press note issued by the MCA Nepal.
Nepal Electricity Authority (NEA) managing director (MD) Kul Man Ghising and the US ambassador to Nepal Dean R Thompson, local authorities and elected representatives were also present at the signing ceremony in Bhumahi, Nawalparasi (Bardaghat Susta West) today.
"The US government is committed to working with the government of Nepal to ensure that the compact delivers on Nepal’s energy needs," ambassador Thompson said, addressing the event. "The 400 kV New Butwal Substation will improve Nepal’s transmission capacity contributing to reliable and affordable electricity for household consumption, expanded commercial and industrial enterprises and cross-border electricity trading."
“The 400 kV substation has been a priority for NEA and will supplement the existing 220 kV substation to significantly increase cross-border energy trade in the region,” NEA managing director Kulman Ghising said, on the occasion.
During the event, MCA-Nepal executive director Khadga Bahadur Bisht highlighted the overall progress being made in the implementation of the MCC Nepal Compact. "MCA-Nepal is expediting all works for the construction of the transmission lines and substations under the Electricity Transmission Project," he said, adding that the MCA-Nepal is at the final stages of the procurement process to sign the contract for the construction of the remaining two substations as well.
Along with this substation, MCA-Nepal is constructing two other substations in Ratmate, Nuwakot district and Damauli, Tanahun district under the Electricity Transmission Project funded by the US government’s Millennium Challenge Corporation (MCC) and the government of Nepal. The contractors for the remaining two substations are being selected.
The MCA-Nepal Board, chaired by the finance secretary, decided in its March board meeting to advance the 18-km Nepal portion of the New Butwal-Gorakhpur power transmission line to facilitate timely initiation of cross-border power trade as outlined in the agreement with India.
However, it took a long time due to technical problem in contract, and also tug-of-war between the NEA and MCA-Nepal. The tug of war has, according to the sources, created doubt on the successful completion of the MCC project within 5-year timeline, which is a fixed time period of the project.
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