Kathmandu. Meanwhile, construction of New Butwal substation and 18-km transmission line was inaugurated at Sunwal of Nawalparasi (Bardaghat Susta West) on Monday.

The new infrastructure, being built under the MCC Nepal Compact, will strengthen Nepal’s electronic network and establish significant energy trade interconnection between India and Nepal.

The construction was inaugurated in the presence of Finance Minister Rameshwor Prasad Khanal, United States Ambassador to Nepal Dean R Thompson, MCC Country Director Diane Francisco, MCC-Nepal’s Executive Director Khadga Bahadur Bista and local people’s representatives.

“The project reflects the government’s strong commitment to expand access to clean energy, increase regional energy trade and support the national goals of achieving long-term economic growth,” he said. With the support of MCC and MCA-Nepal, we are translating the agreement into action for the benefit of the nation. ”

Speaking at the event, H.E. Thompson, U.S. Ambassador to Nepal, said that the United States is proud to stand with Nepal as a committed partner in building more reliable energy systems.

“Projects such as transmission lines and substations not only help households and businesses keep their lights on, but also create opportunities for business, growth and progress throughout the region. Today’s event is a proof of what we can achieve together,” he said.

“A new chapter has been added today in terms of strengthening energy security of Nepal,” said Bista, executive director of MCA-Nepal. MCA-Nepal is proud to be able to implement this project in close partnership with the Government of Nepal and the U.S. Government and MCC, and is committed to making it a success. ”

The 18 km long transmission line connects the 400 KV New Butwal substation to Nepal-India border. The infrastructure, which will be built at an estimated cost of 50 million US dollars, will help Nepal export clean hydropower to India under the landmark Power Trade Agreement 2024, which aims to export 10,000 MW of electricity within the next decade.

The 18-km transmission line and the New Butwal substation are crucial for Nepal’s economic future as it connects increasing generation of hydropower to regional markets. By strengthening Nepal’s high-voltage electricity network, the project will make the supply of electricity more reliable for households and businesses, reduce power leakage, and enable Nepal to trade its energy. These reforms will reduce the cost of doing business, attract new private investment, and generate additional revenue that can be reinvested in Nepal’s development priorities.