KATHMANDU, JUNE 12 Millennium Challenge Account Nepal (MCA-Nepal) on Tuesday formally launched the construction of key electricity infrastructure projects, including the Ratmate and New Damauli substations and a 297-kilometre transmission line network under the Millennium Challenge Corporation (MCC) Nepal Compact. The groundbreaking ceremony was held at the Ratmate Substation site in Nuwakot in the presence of government officials, MCC representatives, diplomats, contractors and local stakeholders. Jointly financed through a US$550 million grant from the United States and a US$197 million contribution from the Government of Nepal, the project aims to strengthen Nepal's electricity transmission system, improve energy reliability and facilitate regional power trade. The transmission network will cover the Ratmate–New Damauli, New Damauli–New Butwal, and Lapsiphedi–Ratmate–New Hetauda corridors. The broader Electricity Transmission Project includes the construction of high-capacity 400kV substations and more than 300 kilometres of transmission lines. Speaking at the event, Finance Ministry Secretary and MCA-Nepal Board Chair Dr Ghanshyam Upadhyaya described the project as a critical investment for Nepal's energy security, industrial growth and economic development. US Chargé d'Affaires Scott Urbom said the project would strengthen Nepal's energy future by ensuring reliable electricity supply for households, industries and businesses while supporting cross-border energy trade. MCC Resident Country Director Diane Francisco said the infrastructure would help Nepal unlock the full potential of its hydropower sector by enhancing transmission capacity and grid reliability. Acting Managing Director of the Nepal Electricity Authority, Dirghayu Kumar Shrestha, said the project would serve as an important addition to the national transmission network. According to MCA-Nepal Executive Director Khadga Bahadur Bisht, the project will reduce transmission bottlenecks, improve connectivity and position Nepal as a significant player in the regional energy market. Construction work is being carried out by four contractors, including India's Techno Electric and Engineering Company Ltd., which is building the Ratmate and New Damauli substations. Upon completion, the Ratmate and New Damauli facilities are expected to become among Nepal's largest high-voltage substations, supporting growing electricity demand and long-term economic growth.