Kathmandu: Following the successful completion of the U.S. Government’s foreign aid review and reaffirmed joint commitment from both governments, the Millennium Challenge Corporation (MCC) Nepal Compact has officially resumed. In a significant milestone, 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.
Through a competitive international bidding process, MCA-Nepal awarded the construction of the Ratamate–New Damauli transmission line to the Angelique Skipper Joint Venture and the New Damauli–New Butwal transmission line to the Waiba Salasar Joint Venture.
With a combined value of USD 154.5 million, these contracts cover the design, installation, testing, and operation of 180 kilometers of 400 kV transmission lines.
The agreements were signed by MCA-Nepal Executive Director Mr. Khadga Bahadur Bista and representatives from the two companies, in the presence of officials from the Ministry of Finance, Nepal Electricity Authority, MCC Acting Vice President, MCC Resident Country Mission representatives, and the U.S. Embassy in Nepal.
“MCC reaffirms its commitment to shared priorities and Nepal’s development goals through these agreements,” said MCC Acting Vice President Mr. Jon Wingle. “We are proud to work with our Nepali counterparts to improve electricity availability and reliability, while also enhancing regional power trade and interconnection.”
Finance Secretary and MCA-Nepal Board Chair Mr. Ghanshyam Upadhyaya expressed appreciation for the U.S. Government’s support in implementing Nepal’s plans for constructing transmission lines and substations, assuring continued government support for the program.
“This construction contract is not just an achievement but also a tangible symbol of the United States’ enduring commitment to Nepal’s development and prosperity,” said U.S. Embassy Deputy Chief of Mission Mr. Jason Meeks. “Through this partnership, we are not only building power transmission lines and economic infrastructure, but also accelerating Nepal’s long-term development. The MCC Compact is a cornerstone of U.S.–Nepal cooperation, and we are proud to move forward together to benefit all Nepalis.”
MCA-Nepal Executive Director Mr. Bista acknowledged the continued U.S. support and the recent approval enabling the project’s progress, stating, “Today’s milestone reflects the shared commitment of the Government of Nepal and all stakeholders toward this national pride project. We remain focused on sustainable collaboration and successful implementation.”
The MCC Nepal Compact represents a historic USD 697 million investment aimed at fostering long-term economic growth in Nepal by creating a favorable environment for private sector investment. The Compact’s Electricity Transmission Project and Road Maintenance Project are designed to strengthen key infrastructure, enhance cross-border energy trade, improve Nepal’s transportation network, expand interconnectivity, and contribute to sustained economic growth.
