MCA-Nepal Completes Signing of All Three 400 kV Substations

Kathmandu — Millennium Challenge Account Nepal (MCA-Nepal) has finalized the contract for constructing a 400 kV substation in Damauli, Tanahun district, with Techno Electric and Engineering Company Ltd. (TEECL), India on Wednesday. The contract, valued at US$ 38.89 million, marks the completion of all three 400 kV substation contracts under the Millennium Challenge Corporation (MCC) Nepal Compact.

Once completed, the New Damauli Substation will have a capacity of 1000 Mega Volt Ampere, making it one of the largest substations in Nepal, alongside the Ratmate Substation, for which MCA-Nepal signed a contract with TEECL in June 2024. The New Damauli Substation will be a critical connection point for power flow with the Ratmate, Lekhnath, and New Butwal Substations.

The contract was signed and exchanged by Khadga Bahadur Bisht, Executive Director at MCA-Nepal, and Rajiv Agarwal, Director-Commercial at TEECL, India, in the presence of Minister for Energy, Water Resources and Irrigation Deepak Khadka, U.S. Ambassador to Nepal Dean R. Thompson, MCA-Nepal Board Members, TEECL Managing Director Padam Prakash Gupta, and officials from NEA, MCC, and MCA-Nepal.

in the events, Minister Khadka expressed confidence that the substations would significantly strengthen Nepal’s electricity distribution system, paving the way for economic prosperity. He urged all stakeholders to ensure the timely completion of the project.

Ram Prasad Ghimire, Secretary at the Ministry of Finance and MCA-Nepal Board Chair, stated, “The progress is a good indication of MCA-Nepal’s ongoing efforts to implement the MCC Nepal Compact. The three substations are essential to Nepal’s growing energy sector and will help ensure a reliable power supply, enhancing industrial and commercial activities for economic growth.”

same as, Ambassador Thompson added, “Today, standing together with the Government of Nepal, Ministry of Finance, Ministry of Energy, Water Resources and Irrigation, the Nepal Electricity Authority, and MCA-Nepal, I’d like to acknowledge the important role each of you has played in the progress of this project and shaping a brighter future for Nepal. The MCC Nepal Compact is going to be an important part of our shared success story, working with Nepal to power Nepali homes, power the Nepali economy, create jobs, and reduce poverty through inclusive and sustainable economic growth.”

MCA-Nepal Executive Director Bisht remarked, “It is indeed a remarkable milestone to sign all three substation contracts while approaching the one-year anniversary of the Compact’s launch. I would like to acknowledge the support of the Government of Nepal and our key stakeholders – the Ministry of Finance, the MCA Nepal Board, NEA, and MCC for their continued support.”

In addition to the three substations, the MCC Nepal Compact will fund the construction of up to 315 km of transmission lines from Lapsiphedi, Kathmandu to the Nepal-India border in Nawalparasi (Bardaghat Susta West) under the Electricity Transmission Project. Bids for the 18 km cross-border transmission line are currently under evaluation, with MCA-Nepal aiming to award the contract in August. Preparations are also underway to relaunch bids for the remaining 297 km of transmission lines this year.

Moreover, MCA-Nepal is preparing to launch the Full Depth Reclamation procurement for the Roads Maintenance Project in August.