MCA-Nepal signs contract for 18-km cross border transmission line

MCA-Nepal signed a contract for the critical 18-km cross-border electricity transmission line, a critical component of the broader Electricity Transmission Project under the Millennium Challenge Corporation (MCC) Nepal Compact funded by the Government of Nepal and the US government.

As MCA-Nepal marks the one-year anniversary of the Compact’s Entry-Into-Force, this new milestone reflects the unwavering commitment from all stakeholders to enhancing regional energy trade between Nepal and India, states a press note issued by the MCA-Nepal office.

The contract, valued at $12.36 million, has been awarded to Transrail Lighting Ltd, which will construct the transmission line from the 400 kV New Butwal Substation in Nawalparasi Bardhaghat Susta West to the Nepal-India border within the contract duration of 21 months. 

The contract was signed by executive director of MCA-Nepal Khadga Bahadur Bisht and representative of Transrail Lighting Ltd Amol Wankhede, in the presence of officials from the Finance Ministry, National Electricity Authority (NEA), MCC and MCA-Nepal, 

“Along with the signings of the three substation contracts worth $126 million, this 18-km transmission line project is set to play an important role in helping Nepal make strides in achieving its domestic power goals and reinforcing Nepal's position in the regional energy market," finance secretary and MCA-Nepal Board chair Dr. Ram Prasad Ghimire said after signing the contract.  

"This 18-km segment is not just a construction project; it’s a critical link that will enhance Nepal's energy infrastructure and deepen our cross-border energy cooperation with India," managing director of NEA Kul Man Ghising said, adding that the accomplishment is a testament to the strategic foresight and dedication of all involved.

"The successful contracting of the 18-km cross-border transmission line marks a major milestone in our shared journey to transform Nepal’s energy landscape and economic future," MCC Resident country director Ms Diane L Francisco said addressing the signing ceremony. "This achievement is one of many successes of the MCC Nepal Compact in the past year, but it is particularly significant as it paves the way for the larger 297-km transmission line project." 

“As we celebrate the first anniversary of the MCC-Nepal Compact, this contract signing is a clear indicator of the progress we are making," executive director of MCA-Nepal Khadga Bahadur Bisht said, adding that the 18-km cross-border segment, separated from the larger project to expedite its completion, shows the government of Nepal’s commitment to meeting the project goals of this National Pride Project, and reaffirms that collaborative effort from all stakeholders leads to a successful outcome.

For the remaining 297-km of transmission line, MCA-Nepal’s preparations are on track to launch the bid before the end of this year.