Nuwakot: The Millennium Challenge Account Nepal Development Committee (MCA-Nepal) has officially launched the construction of the Ratmate and New Damauli substations, along with a 297-kilometer electricity transmission line, under the Millennium Challenge Corporation (MCC) Nepal Compact.
The project, funded through a US$550 million grant from the United States and a US$197 million investment from the Government of Nepal, is considered a major initiative for expanding Nepal’s electricity transmission infrastructure. In addition to developing international-standard transmission facilities, the project also includes road network improvement works.
The inauguration ceremony was attended by senior officials from the Government of Nepal, representatives of MCC and the U.S. Embassy, development partners, construction companies, and local stakeholders.
Under the MCC Nepal Compact, three 400 kV high-voltage substations and 315 kilometers of transmission lines are planned. The project is expected to strengthen Nepal’s national power transmission system, reduce transmission constraints, and ensure reliable electricity supply to households, industries, and businesses. It is also expected to support Nepal’s greater participation in regional electricity trade.
The 297-kilometer transmission line segment launched under the project includes the Lapsiphedi–Ratmate–New Hetauda, Ratmate–New Damauli, and New Damauli–New Butwal sections.
Dr. Ghanshyam Upadhyaya, Secretary of the Ministry of Finance and Chairperson of the MCA-Nepal Board of Directors, described the investment in transmission infrastructure as a crucial step linked to Nepal’s economic future. He emphasized that strengthening the transmission system is essential for energy security, industrial expansion, and fully utilizing the potential of the energy sector.
U.S. Chargé d’Affaires to Nepal Scott Urbom described the MCC Nepal Compact as a foundational project for shaping Nepal’s energy future, stating that households, agriculture, industries, and businesses would directly benefit from it. According to him, the project will provide the infrastructure needed not only for domestic electricity transmission but also for cross-border power flows.
MCC Resident Country Director Diane Francisco expressed confidence that the project would accelerate the long-term development of Nepal’s energy sector, economic growth, and regional energy integration.
Nepal Electricity Authority Acting Managing Director Dirghayu Kumar Shrestha described the substations and transmission lines under construction as a significant expansion of the national transmission network.
MCA-Nepal Executive Director Khadga Bahadur Bista said the project marks a new chapter in Nepal’s energy infrastructure development and that the transmission network being built would deliver long-term benefits to the country. He added that it would reduce transmission bottlenecks and strengthen Nepal’s role in the regional energy market.
Under the project, Techno Electric & Engineering Company Limited is constructing the Ratmate and New Damauli substations. Similarly, the Ashish–Boshler Joint Venture is building the 117-kilometer Lapsiphedi–Ratmate–New Hetauda section, the Angelique–Skipper Joint Venture is constructing the 90-kilometer Ratmate–New Damauli section, and the Waiba–Salsar Joint Venture is responsible for the 90-kilometer New Damauli–New Butwal section.
Upon completion, the Ratmate and New Damauli substations will be among Nepal’s largest high-voltage substations. These facilities are expected to further strengthen the country’s transmission network, help manage growing energy demand, and support economic development.
Nepalpurbadhar