Nuwakot. KATHMANDU: The Millennium Challenge Account Nepal Development Committee (MCC) has formally started the construction of the 297-kilometer-long electricity transmission line under the Millennium Challenge Corporation (MCC) Nepal Compact’s power transmission project.

With $550 million grant from the United States and $197 million from Government of Nepal, this historic partnership will build internationally qualified electricity transmission infrastructure and upgrade critical road networks.

The project kicked off with the participation of senior officials of the Government of Nepal, representatives from MCC and the U.S. Embassy, development partners, contractors, local stakeholders, and community leaders.

Three high-capacity 400 kV substations and a 315-kilometer transmission line are being constructed under the electricity transmission project of the MCC Nepal Compact project, a joint investment of Nepal and the United States. This infrastructure will strengthen Nepal’s national electricity grid and reduce transmission disruptions. It is expected to improve the reliability of electricity supply for households and businesses and help promote Nepal’s greater participation in the regional electricity market.

The 297-km long transmission line includes Lapsiphedi-Ratmate-New Hetauda transmission line, Ratmate-New Damauli transmission line and New Damauli-New Butwal transmission line.

Dr Ghanashyam Upadhyaya, Finance Secretary of the Government of Nepal and MCA-Nepal Board of Directors, said the project is an important investment for the country’s economic future. “To ensure energy security, promote investment and industrial expansion, and reap maximum benefits from Nepal’s energy potential, it is necessary to strengthen electricity transmission infrastructure. ”

U.S. Chargé d’Affaires to Nepal Scott Urban, reaffirming the United States’ longstanding partnership with Nepal and its commitment to the MCC-Nepal Compact, said, “Through this Compact, we are building the backbone for Nepal’s energy future.” Reliable electricity will be supplied to every nook and corner of the country as well as across borders. For households, this means continuous electricity, while for factories and agriculture, it means an uninterrupted availability of energy to boost productivity. It will open up new horizons for the expansion of Nepali businesses. ”

MCC Resident Country Director Diane Francisco emphasized the long-term importance of Nepal’s economic growth and regional energy integration, saying, “These investments will help unleash the full potential of Nepal’s energy sector by strengthening the transmission network needed to supply reliable electricity for households, businesses and industries.” MCC is proud to partner with Nepal on this transformative infrastructure initiative. ”

Speaking on the occasion, Acting Executive Director of Nepal Electricity Authority (NEA) Dirgha Kumar Shrestha said, “These infrastructures being built under the MCC Nepal Compact are not an isolated system but an important extension of Nepal’s national grid. ”

Executive Director of MCA-Nepal Khadga Bahadur Bista said, “Today is going to be a milestone in the energy infrastructure development of Nepal. Under construction a stronger, more reliable and innovative electricity transmission network will benefit Nepalis in the long run and establish Nepal as a key player in the regional energy market. He also mentioned that the project will reduce electricity transmission constraints and increase the closeness between Nepal and the region.

Four construction companies are involved in the construction of substations and transmission lines. Techno Electric and Engineering Company Ltd is constructing the 117-km Lapsiphedi-Ratmate-New Hetauda transmission line, Angelic-Skipper joint venture is constructing the 90-km Ratmate-New Damauli transmission line and 90-km New Damauli-Butwal transmission line.

After the completion of the construction, Ratomate substation and New Damauli substation will be among the largest high-voltage substations of Nepal. These substations and transmission line infrastructure will strengthen Nepal’s electricity transmission network and aid in addressing long-term energy demand and accelerating economic growth.