Kathmandu: MCA-Nepal, the Kathmandu-based MCC project implementation authority, has made its progress report public on Thursday stating that it has made significant strides toward achieving goals and setting a strong foundation for continued success since the Entry into Force on August 30, 2023.
MCA-Nepal has listed signing of high-value contracts worth USD 126 million to construct 400 kV substations, the selection of a contractor for the critical 18 km transmission line with an estimated budget of USD 13.2 million, and a USD 1.2 million contract to provide embedded advisory support to the Electricity Regulatory Commission (ERC) as major accomplishments since Entry into Force. Besides, it has supported 270 project-affected people through the Livelihood Restoration Program following successful land acquisition at the Ratmate substation. According to MCA-Nepal following achievements have been made:
Substations: MCA-Nepal awarded and signed contracts worth approximately US$ 126 million for the construction of three 400 kV GIS substations at three locations from May – July 2024 in Nawalparasi West, Nuwakot, and Tanahun. Two substations, the New Damauli Substation and the Ratmate Substation will each have a capacity of 1000 MVA, making them the largest substations in the country. Similarly, a two-year US$ one million Livelihood Restoration Program for 270 project-affected people in Ratmate Substation concluded on 30 May 2024 to pave the way for new businesses and prosperity. MCA-Nepal had earlier acquired around 400 Ropanis of land for the substation.
Transmission lines: The contractor for the 18 km cross-border transmission line segment has been selected and will be awarded within August 2024. In addition, MCA-Nepal is planning to launch procurement for the 297 km transmission Line by November this year.
Consultant Supervision Engineers are on board for supervision of construction works of transmission lines and substations.
Site Access- Land Acquisition: For the transmission line tower pads land acquisition, CDO-led Compensation Fixation Committees (CFC) have been formed to fix land rates for 856 tower pads across nine out of ten districts. Rates for the lands to be acquired in Dhading, Makwanpur and Nawalparasi West have been fixed as of July 2024. MCA-Nepal has also completed the opening of bank accounts and provided financial literacy training for all persons receiving compensation which are necessary precursors to making payments in these three districts. Similarly, the CFCs in six districts will be fixing the land rates for respective districts. MCA-Nepal has also started consultation in its 10th district that is Kathmandu and aims to acquire land in this fiscal year.
Site Access- Forest clearance: Forest census works have been completed in nine out of ten project-affected districts. MCA-Nepal is doing its due diligence to verify the findings and acquire forest permits. Similar to land acquisition, MCA-Nepal plans to start and complete forest census work in Kathmandu this fiscal year.
An important component of the Electricity Transmission Project is the Power Sector Technical Assistance. A contract worth US$ 1.2 million was signed on 22 July 2024 to provide advisory support in the economic/financial, technical, legal and policy/institutional regulatory work of the Electricity Regulatory Commission. The goal is to create an enabling environment of transparency, efficiency, and competition in Nepal’s power sector.
Likewise, a contract worth US$ 2.4 million was signed on 15 July 2024 to provide consultancy services to enhance electricity use with a focus on preparing Municipal Energy Plans and developing capacities for productive use of electricity within affected wards under the MCA Partnership Program, a benefit-sharing activity under the Electricity Transmission Project.
Road Maintenance Project: The Initial Environmental Examination (IEE) Report for road maintenance works in the 40 km segment of the road from Dhan Khola to Lamahi in the East-West Highway has been approved by the Ministry of Physical Infrastructure and Transport. MCA-Nepal plans to launch the procurement of road maintenance works using Full Depth Reclamation (FDR) technology by Sep/Oct this year. This segment will be maintained by applying new climate-smart technology of Full Depth Reclamation (FDR) and Superpave.
These are clear indicators that MCA-Nepal is on the path to delivering a transformative impact for Nepal, MCA-Nepal said. “While we recognize that challenges remain, we are fully committed to working collaboratively with all stakeholders to overcome any obstacles and ensure continued success.”
The MCC project implementation body has said that in the second year, the focus will be on signing contracts and initiating the design of the 297 km transmission line bids, advancing the construction of three 400 kV substations, and supporting the introduction of Full Depth Reclamation technology across a 40 km road segment from Dhankhola to Lamahi. “With the unwavering support of the MCA-Nepal Board, MCC, and the Ministry of Finance, we are confident in our ability to meet these goals and address any challenges that may arise,” MCA-Nepal said.
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