Kathmandu- MCC to Provide Additional Aid of Rs. 6.8 Billion for Nepal’s Infrastructure Projects
The American aid initiative, Millennium Challenge Corporation (MCC), has announced an additional assistance package of 6.8 billion rupees for Nepal. The project, which has been in implementation since September 2023 , is funded by an American grant along with cost-sharing from the Government of Nepal.
In a press release, the MCC Board of Directors revealed their decision to allocate the additional funding for infrastructure projects under the MCC Nepal Compact, valued at 92 billion rupees.
“The MCC Board of Directors has approved an additional five million U.S. dollars for the Nepal Compact. This decision underscores the shared commitment between MCC and the Government of Nepal to advance Nepal’s development priorities through transformative, high-quality infrastructure projects,” the statement noted.
Cameron Alford, Vice President of MCC Compact Operations, emphasized that the additional aid will strengthen Nepal’s electricity transmission system, foster long-term economic growth, and ensure the success of the Compact.
Under the MCC initiative, a 400 kV double-circuit transmission line spanning 315 kilometers will be constructed. The transmission line will connect Lapsiphedi in Kathmandu to Ratmate in Nuwakot, and extend through Makwanpur, Dhading, Tanahun, Palpa, Chitwan, Nawalparasi, and Maheshpur on the Nepal-India border.
Once completed, this infrastructure will enable the exchange of up to 3,000 megawatts of electricity between Nepal and India, significantly enhancing Nepal’s energy trade and contributing to the region’s economic integration.
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