Milestone marks renewed momentum for MCC Nepal Compact after foreign aid review
KATHMANDU, AUGUST 14
The Millennium Challenge Account-Nepal (MCA-Nepal) has signed two major contracts worth US$154.5 million to construct 180 kilometers of high-voltage transmission lines under the Millennium Challenge Corporation (MCC) Nepal Compact.
The agreements, awarded after a competitive international bidding process, went to Angelique-Skipper JV for the Ratmate–New Damauli section (Lot 2) and WAIBA-SALASAR JV for the New Damauli–New Butwal section (Lot 3). The contracts cover the design, installation, testing, and commissioning of the transmission lines.
The signing ceremony in Kathmandu was attended by MCA-Nepal Executive Director Khadga Bahadur Bisht, MCC Acting Deputy Vice President John Wingle, U.S. Embassy Nepal's Chargé d'Affaires Jason Meeks, Finance Ministry Secretary Ghanashyam Upadhyaya, and representatives from the Nepal Electricity Authority.
"In signing these contracts, MCC reaffirms the United States' investment in mutual priorities and Nepal's development goals," said 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."
"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."
Secretary Upadhyaya expressed the government's continued support for the program, while Bisht reaffirmed MCA-Nepal's focus on delivering the National Pride Project 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.
