MCA-Nepal Signs $154.5 Million Contracts to Advance Electricity Transmission Project

The Millennium Challenge Account-Nepal (MCA-Nepal) has signed two major contracts to advance the Electricity Transmission Project under the Nepal-U.S. Millennium Challenge Compact, jointly funded by both governments.

Following a successful foreign aid review, 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. Combined, the contracts, valued at approximately US $154.5 million, will cover the design, installation, testing, and commissioning of 180 kilometers of high-voltage transmission lines.

The agreements were signed in the presence of MCA-Nepal Executive Director Khadga Bahadur Bisht, U.S. Millennium Challenge Corporation (MCC) officials, representatives from the U.S. Embassy, Nepal’s Ministry of Finance, and the Nepal Electricity Authority.

Acting MCC Deputy Vice President John Wingle emphasized the U.S.’s commitment to Nepal’s development goals, saying the project will enhance electricity availability, reliability, and regional power trade. Jason Meeks, Chargé d’Affaires of the U.S. Embassy in Nepal, called the milestone “a tangible symbol of the United States’ enduring commitment to Nepal’s growth and prosperity.”

MCA-Nepal Executive Director Bisht expressed appreciation for the U.S. support, highlighting that the milestone reflects the shared commitment of all stakeholders and the Government of Nepal to this “National Pride Project.”

The MCC Nepal Compact represents a \$697 million investment in Nepal’s long-term economic development. The compact’s Electricity Transmission and Road Maintenance Projects aim to strengthen critical infrastructure, enhance cross-border energy trade, and improve transportation networks, paving the way for increased private sector investment and economic growth.