Electricity transmission project, contract agreement for three substations, road maintenance, significant progress claimed in access to project and construction sites, and livelihood restoration.
Kathmandu — Millennium Challenge Account (MCA-Nepal) made public the one-year progress of the project on Wednesday. MCA-Nepal also clarified that the project will be completed within the stipulated time.
In a program jointly organized by MCA-Nepal and the U.S. Embassy, information was provided on the progress made so far in the electricity transmission project, contract agreements for three substations, road maintenance, access to project and construction sites, and livelihood restoration.
The project has been advanced under a $500 million grant agreement from the U.S. government for energy and road infrastructure. After the MCC agreement was approved by Nepal’s Parliament, the five-year term began on August 30, 2023, as part of the implementation process.
MCA-Nepal’s Executive Director Khadga Bahadur Bista stated that a contractor was selected in July 2024 for the 18 km long cross-border electricity transmission line under the electricity transmission project. He mentioned that from the 315 km long transmission line network, the 18 km long Butwal-Gorakhpur transmission line segment has been prioritized and is being advanced. This will also facilitate cross-border energy trade between Nepal and India.
Bista clarified that bids will be invited again this year for the 297 km transmission line. He mentioned that the contract agreements for three substations have already been completed. The contract for the new Butwal substation in Nawalparasi West was signed in April 2024 for $35.51 million, the Ratmate substation in Nuwakot was signed in June 2024 for $51.6 million, and the contract for the new Damauli substation in Tanahun was signed in July 2024 for $38.89 million.
Bista mentioned that progress has been made in acquiring land for the construction of 856 transmission tower foundations across 10 districts to facilitate access to the project sites and livelihood restoration. He noted that 270 people have been trained through the two-year livelihood restoration program. He also highlighted that compensation for land has been determined in three districts: Dhading, Makawanpur, and Nawalparasi West. Additionally, the first phase of tree enumeration has been completed in nine districts.
The road maintenance project, the Road Department has been provided support including upgrading of laboratory facilities, road testing equipment, and technical training. He mentioned that a 40 km road section from Dhankhola to Lamahi has been approved for full-depth reclamation (FDR) technology, and tenders will be invited this year. Additionally, two potential road sections have been identified and approved for periodic maintenance stated Bista.
that MCA-Nepal is working to complete the project within the stipulated time. “Based on the current progress, we are planning to complete the work on time or even ahead of schedule,” Bista said. “We are aware of the challenges ahead, as this is a large project. We hope to finish it earlier than the specified time after completing the compensation work.
Diane L. Francisco, the Resident Country Director of MCC, mentioned that the U.S. project is currently being implemented in 45 different countries. She stated that $15 billion in grant funds are being used to improve the living standards of 160 million people across these countries. “We are on the right path to telling a success story in Nepal,” she said.
She mentioned that the MCC project is being carried out for the benefit of Nepal and its people. “This project will help provide energy for all Nepalis and also promote clean energy regionally,” she said. She also noted that the work on the project will meet international quality standards.
U.S. Ambassador Dean R. Thompson expressed confidence that the MCC project, which is a collaboration between the U.S. and Nepal, will be completed on time. “We must also remember issues like COVID-19 and the earthquake. However, we can still complete the project within the specified time,” he said.
Source: Kantipur
