With signing of $154 million power line contracts, MCC projects get a boost in Nepal

Kathmandu: Following the successful completion of the foreign aid review, the Millennium Challenge Corporation (MCC) Nepal Compact has resumed work with renewed momentum and shared commitment from both governments. The Millennium Challenge Account-Nepal (MCA-Nepal) on Thursday signed two major contracts to advance the compact’s Electricity Transmission Project, jointly funded by the governments of Nepal and the United States. The milestone signals both governments’ commitment to delivering on one of Nepal’s most transformative infrastructure partnerships. After a competitive international bidding process, MCA-Nepal awarded Lot 2 contract (Ratmate to New Damauli) to Angelique-Skipper JV and Lot 3 contract (New Damauli to New Butwal) to WAIBA-SALASAR JV.

Combined, these contracts are valued at approximately US $154.5 million and will cover the design, installation, testing, and commissioning of 180 kilometers of high-voltage transmission lines, MCA Nepal said.

MCA-Nepal Executive Director Khadga Bahadur Bisht and company representatives signed the agreements in the presence of MCC’s Acting Deputy Vice President, representatives from the MCC Resident Country Mission, officials from the US Embassy, Nepal’s Ministry of Finance, and the Nepal Electricity Authority.

“In signing these contracts, MCC reaffirms the United States’ investment in mutual priorities and Nepal’s development goals,” said Acting Deputy Vice President John Wingle. “We are honored to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal and enhance regional power trade and integration.”

Ghanashyam Upadhyaya, Secretary at the Ministry of Finance and Chairperson of the MCA-Nepal Board of Directors, appreciated the financial support from the US government to materialize the Government of Nepal’s plan to construct transmission lines and substations, and expressed continued government support for this program.

“This milestone is more than a construction contract. It’s a tangible symbol of the United States’ enduring commitment to Nepal’s growth and prosperity,” said Jason Meeks, US Embassy Nepal’s Chargé d’Affaires. “Through this partnership, we are not only creating power lines and economic infrastructure but also accelerating Nepal’s long-term growth. The MCC compact is a cornerstone of cooperation between Nepal and the United States. We’re proud to be moving forward together to benefit all citizens of Nepal.”

MCA-Nepal Executive Director Bisht appreciated the US government’s unwavering support and final approval to move the compact forward. “This milestone reflects the shared commitment of all stakeholders and the Government of Nepal to this National Pride Project. We remain focused on successful implementation through sustained collaboration,” he said.

The MCC Nepal Compact represents a landmark $697 million investment in Nepal’s long-term economic development, laying a foundation for increased private sector investment. Through its Electricity Transmission and Road Maintenance Projects, the compact is designed to boost connectivity and unlock economic growth by strengthening critical infrastructure, enhancing cross-border energy trade, and improving Nepal’s transportation network.