MCA-Nepal and Techno Electric Ink Agreement for 400kV Ratmate Substation

Kathmandu; MCA-Nepal has awarded and signed a contract with Techno Electric and Engineering Company Ltd., India, to construct a 400 kV Ratmate Substation in Belkotgadhi Municipality-7, Nuwakot district. This project is a significant step in implementing the Millennium Challenge Corporation (MCC) Nepal Compact.

The 400 kV Gas Insulated Switchgear (GIS) substation will be constructed over 39 months. Upon completion, the substation will have a capacity of 1000 mega volt-ampere (MVA), making it one of the largest substations in Nepal. The estimated cost for this substation is 51.60 million USD, and it will serve as a crucial interconnection for power transmission between the Lapsiphedi and New Hetauda Substations.

The contract was signed by Khadga Bahadur Bisht, Executive Director at MCA-Nepal, and Rajiv Agarwal, Director-Commercial at Techno Electric and Engineering Company Ltd., India, in the presence of MCC and MCA-Nepal officials. With this contract, MCA-Nepal has now signed two of the three planned substation construction contracts under the MCC Nepal Compact.

At the signing ceremony, NEA Managing Director, Kulman Ghising stated, “The 400 kV Ratmate Substation, as envisioned in the Transmission System Development Plan of Nepal (TSDPN), is a critical component of Nepal's national power transmission system and a milestone in the MCC Nepal Compact’s contribution to the energy sector in Nepal.”

Diane L. Francisco, Resident Country Director of MCC, remarked, “The signing of this second substation contract marks significant progress as the MCC Nepal Compact builds momentum. We are confident that over the next few years, the MCC Nepal Compact will provide critical contributions to Nepal’s growing energy sector, helping to meet the country’s evolving needs and bringing prosperity to the Nepali people.”

MCA-Nepal Executive Director Bisht added, “MCA-Nepal is expediting all works related to the construction of substations and transmission lines under the Electricity Transmission Project funded by the U.S. Government’s MCC and the Government of Nepal. The contract for the third substation in Damauli is in the pipeline, and bids for the 18 km cross-border line are under evaluation. We are also in the final stages of the procurement process to invite bids for the construction of the remaining portion of the transmission line.”

Studies indicate that this substation will also have an evacuation capacity of around 3,200 MW of power from hydropower projects and substations. Reliable power at various voltage levels will be available for distribution in Nepal, enhancing industrial and commercial activities.

In addition to the three substations, the MCC Nepal Compact will fund the construction of up to 315 km of transmission line from Lapsiphedi, Kathmandu, to the Nepal-India border in Nawalparasi (Bardaghat Susta West). The bids for the 18 km cross-border transmission line have been received and are being evaluated, with the contract expected to be awarded in August. Preparations are on track to relaunch bids for the remaining 297 km of transmission lines later this year.