Kathmandu: Millennium Challenge Account Nepal (MCA-Nepal) has successfully completed the first year of implementing the Millennium Challenge Corporation (MCC) Nepal Compact, marking a significant milestone since its official launch on August 30, 2023. The first year saw major achievements, including the awarding of $126 million in construction contracts for the development of three 400 kV substations, along with the initiation of two-year livelihood restoration programs at the Ratmate Substation, which have benefited 270 individuals.
In a significant development today, MCA-Nepal signed a $12.36 million contract with Transrail Lighting Ltd. for the construction of an 18-kilometer cross-border transmission line from New Butwal to the Nepal-India border. This strategic infrastructure project is expected to greatly enhance Nepal’s energy capabilities and deepen cross-border energy cooperation between Nepal and India.
Further solidifying its progress, MCA-Nepal has entered into contracts totaling $1.2 million to provide embedded advisory support to Nepal’s Electricity Regulatory Commission (ERC) and $2.4 million under the MCA Partnership Program to enhance electricity usage in project-affected communities. These initiatives not only underscore the progress made in the first year but also build momentum as the MCC Nepal Compact moves into its second year, positioning Nepal to lead in regional energy exports, job creation, and infrastructure development.
These milestones reflect MCA-Nepal’s commitment to advancing the nation’s energy infrastructure and fostering sustainable economic growth, setting a strong foundation for the years ahead.
