18-KM Transmission Line to Be Completed in 21 Months Under MCA-Nepal

Kathmandu: MCA-Nepal has signed a contract for an 18-kilometer cross-border electricity transmission line, a critical component of the Electricity Transmission Project under the Millennium Challenge Corporation (MCC) Nepal Compact, funded by the Government of Nepal and the U.S. Government.

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

Dr. Ram Prasad Ghimire, Secretary of the Ministry of Finance and MCA-Nepal Board Chair, stated, “Along with the signing of the three substation contracts worth USD 126 million, this transmission line will play an important role in helping Nepal achieve its domestic power goals and reinforcing its position in the regional energy market.”

Similarly, Kul Man Ghising, Managing Director of Nepal Electricity Authority (NEA), remarked, "This 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."

During the ceremony, Diane L. Francisco, MCC Resident Country Director, said, “The successful contracting of this cross-border transmission line marks a major milestone in our shared journey to transform Nepal’s energy landscape and economic future. This achievement is one of many successes of the MCC Nepal Compact in the past year.”

Khadga Bahadur Bisht, Executive Director of MCA-Nepal, added, “As we celebrate the first anniversary of the MCC-Nepal Compact, this contract signing is a clear indicator of the progress we are making. The 18-kilometer cross-border segment, separated from the larger project to expedite its completion, demonstrates 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 kilometers of transmission line, MCA-Nepal is on track to launch the bid before the end of this year.