KATHMANDU: Millennium Challenge Account Nepal (MCA-Nepal) on Wednesday commemorated the initiation of construction of the 18-kilometer (km) transmission line and the New Butwal Substation in Sunawal, Nawalparasi (Bardaghat Susta West). The new infrastructure, part of the Millennium Challenge Corporation (MCC) Nepal Compact, will strengthen Nepal’s electricity grid and establish a major energy trade interconnection between Nepal and India.
MCA-Nepal Executive Director Khadga Bahadur Bisht joined Minister of Finance Rameshore Prasad Khanal, the US Ambassador Dean Thompson, and MCC Resident Country Director Diane Franscisco at the Construction Initiation event.
“This project reflects the Government of Nepal’s strong commitment to expanding clean energy access, enhancing regional power trade, and supporting our national goal of long-term economic growth,” Minister Khanal said. “With the support of MCC and MCA-Nepal, we are turning agreements into action for the benefit of the country.”
“The United States is proud to stand with Nepal as a committed partner in building a more reliable energy system,” said Ambassador Dean Thompson. “Projects like this transmission line and substation will not only help keep the lights on for families and businesses, but also create opportunities for trade, growth, and prosperity across the region. Today’s event is a testament to what we can achieve together.”
MCA-Nepal Executive Director Bisht said the transmission line and substation will create new opportunities for power trade and bring long-term benefits to our citizens. “MCA-Nepal is proud and committed to implementing this project in close partnership with the Government of Nepal and MCC.”
The 18km Transmission Line will connect the 400kV New Butwal Substation to the Nepal-India border. Together, these projects represent nearly USD 50 million in investment and will help Nepal export clean hydropower to India under the landmark 2024 power trade agreement, which envisions 10,000 megawatts (MW) of electricity exports over the next decade.
The 18km transmission line and New Butwal Substation are vital to Nepal’s economic future because they will connect the country’s growing hydropower supply to regional markets. By strengthening the backbone of Nepal’s high voltage grid, the project will make electricity delivery more reliable for households and businesses, reduce power losses, and enable Nepal to sell power to other countries. These improvements will help lower the cost of doing business, attract new private investment, and generate revenues that can be reinvested in Nepal’s development priorities.
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