MCA-Nepal signs two contracts for road maintenance project

MCA-Nepal is pleased to announce the recent signing of two essential contracts totaling $23.66 million for road maintenance under the Millennium Challenge Corporation (MCC) Nepal Compact. These contracts jointly represent a major step forward for the Compact’s goal to advance Nepal’s long-term economic growth and development, according to a press note issued by the MCA-Nepal.
MCA-Nepal signed today a $20 million contract with Sharma-Kumar Joint Venture for the Road Upgrading Works using Full-Depth Reclamation and Superpave Technology on the Dhankhola to Lamahi section of the East-West Highway, as part of implementing the Road Maintenance Project under the MCC Nepal Compact. Additionally, MCA-Nepal recently signed a supporting $3.66 million contract with Intercontinental Consultants and Technocrats Pvt Ltd (ICT) for Consulting Services for Supervision of upgrading works of this road section and Design and Construction Supervision for Periodic Maintenance of the Narayanghat to Mugling Road Section.
Executive Director at MCA-Nepal Khadga Bahadur Bisht signed and exchanged the contract for the Dhan Khola-Lamahi Road works with the authorised representative of Sharma-Kumar Joint Venture Saurav Sharma, in the presence of the US Ambassador to Nepal Dean Thompson, Joint Secretary at the Ministry of Finance Dr Dhani Ram Sharma, Joint Secretary at the Ministry of Physical Infrastructure and Transport Sushil Babu Dhakal, the Director General at the Department of Roads Dr Bijaya Jaishi, MCA-Nepal Board Members, MCC Nepal Acting Country Director Sanjay Poudyal and MCC and MCA-Nepal officials.
The project includes the construction of a 7-meter carriage way and 2.5-meter shoulder on both sides of the road, making it 12 meter wide using Full-Depth Reclamation and Superpave technology for the upgradation of the 40km Dhan Khola to Lamahi section of the East-West Highway and periodic maintenance of the Narayanghat to Mugling Road Section. The upgrading and maintenance works will be conducted with new technologies, ie., Full Depth Reclamation and Superior Performing Asphalt Pavement (Superpave), for the first time in Nepal.
Addressing the event, the US Ambassador to Nepal Dean Thompson said, “The upgrading of the Dhan Khola-Lamahi Road project and the Narayanghat-Mugling Road Maintenance project represent much more than individual contracts."
"Together, they are another milestone reflecting the strength of the US-Nepal partnership, the momentum of the Millennium Challenge Compact, and a shared commitment at all levels of government to delivering tangible results for the people of Nepal and American businesses working in Nepal," he said, “As the Compact delivers essential road infrastructure across Nepal, these two contracts will introduce American excellence in road maintenance technology by using Full Depth Reclamation and Superpave."
Likewise, Joint Secretary at the Ministry of Finance Dr. Dhani Ram Sharma, on the occasion, expressed his confidence that the latest technologies going to be used in Nepal for the first time will open the road to sustainable, effective and cost-effective road maintenance, and MCA-Nepal would complete the project within the timeline.
Joint-Secretary at the Ministry of Physical Infrastructure and Transport, Sushil Babu Dhakal, said, “The progress reflects MCA-Nepal’s continued efforts to implement the MCC Nepal Compact by introducing new technologies that improve the quality of Nepal’s road system."
MCC Nepal Acting Country Director Sanjay Poudyal said that this project will contribute meaningfully to improving Nepal's road reliability and serve as a practical model that Nepal can replicate more broadly across its road network. He said well-built and well-maintained roads are not merely a consequence of economic growth; they are one of its essential drivers.
MCA-Nepal Executive Director Khadga Bahadur Bisht, on the occasion, said, “It is indeed a remarkable milestone to sign two contracts to move ahead with the Road Maintenance Project. The activities under the contracts will help in lowering trade and vehicle operation costs, increase road safety, decrease travel time, and improve travel quality. I would like to acknowledge the support of the Government of Nepal and our key stakeholders – the Ministry of Physical Infrastructure and Transport, Department of Roads, the MCA-Nepal Board and MCC for their continued support."
The Road Maintenance Project is a component of the MCC Nepal Compact, aimed at reducing transportation costs and improving road conditions in Nepal.