MCA-Nepal Signs Two Major Contracts Worth $154.5 Million

Kathmandu, Aug 14: The Millennium Challenge Account-Nepal (MCA-Nepal) today signed two major contracts to advance the compact’s Electricity Transmission Project, jointly funded by the governments of Nepal and the United States.

In a press statement today, the MCA-Nepal said, "following the successful completion of the foreign aid review, the Millennium Challenge Corporation (MCC) Nepal Compact resumed work with renewed momentum and shared commitment from both governments."

The development underscores the shared commitment of both governments to delivering on one of Nepal’s most transformative infrastructure partnerships, it has been said.

After a competitive international bidding process, MCA-Nepal awarded the Lot 2 contract (Ratmate to New Damauli) to Angelique-Skipper JV and the Lot 3 contract (New Damauli to New Butwal) to WAIBA-SALASAR JV, according to the press release.

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, the 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 U.S. 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,” the statement adds.

Ghanashyam Upadhyaya, Secretary at the Ministry of Finance and Chairperson of the MCA-Nepal Board of Directors, appreciated the financial support from the U.S. 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 U.S. Embassy Nepal’s Chargé d’Affaires, Jason Meeks. “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 added, “We appreciate the U.S. 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.”

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.