The Millennium Challenge Account Nepal (MCA-Nepal) has signed a contract with Techno Electric and Engineering Company Ltd India to construct a 400 kV substation at Ratmate in Belkotgadhi Municipality-7 of Nuwakot district as part of implementing Millennium Challenge Corporation (MCC) Nepal Compact.

“The 400 kV Gas Insulated Switchgear (GIS) substation will be constructed within the contract duration of 39 months,” the MCA-Nepal said in a statement on Saturday. “Once completed, Ratmate Substation will have a capacity of 1000 Mega Volt Ampere making it one of the largest substations in the country.”

The new $51.6 million Ratmate Substation will serve as a critical interconnection of power transmission between the Lapsiphedi and New Hetauda Substations, said the MCA-Nepal, the body responsible for implementing the MCC projects in the country.

Khadga Bahadur Bisht, executive director at the MCA-Nepal, and Rajiv Agarwal, director- commercial at Techno Electric and Engineering Company Ltd India, signed and exchanged the contract in the presence of MCC and MCA-Nepal officials.

With the execution of this contract, MCA-Nepal has signed two of the three substations construction contracts planned under the MCC Nepal Compact.

Nepal Electricity Authority Managing Director Kul Man Ghising has described the signing of the deal as an important progress in implementing the MCC Compact.

“The 400 kV Ratmate Substation, as envisioned in the Transmission System Development Plan of Nepal (TSDPN), is a critical component of Nepal’s national power transmission system and yet another milestone in MCC Nepal Compact’s contribution to the energy sector in Nepal,” he said.

Diane L Francisco, resident country director of Millennium Challenge Corporation (MCC), said the signing of the Ratmate Substation, the second of the three substations, marks a significant stride forward as the MCC Nepal Compact builds momentum in its implementation.

“Over the next few years, we are confident that the progress of the MCC Nepal Compact will provide critical contributions to Nepal’s growing energy sector, helping meet Nepal’s evolving needs, bolstering Nepal’s immense potential, and bringing prosperity to the Nepali people,” Francisco said.

Last month, the MCA-Nepal had signed a contract with another Indian company for the construction of a substation in Nawalparasi. Linxon India Pvt Ltd bagged the contract for the construction of the 400kV New Butwal Substation in Nawalparasi.

MCA-Nepal Executive Director Bisht shared that the MCA-Nepal is expediting all works for the construction of the substations and transmission lines under the Electricity Transmission Project funded by the US government’s Millennium Challenge Corporation (MCC) and the government of Nepal.

“The contract for the third substation in Damauli is in the pipeline and the bids for the 18-km cross-border line are under evaluation,” he said. “We are also at the final stages of the procurement process to invite bids for the construction of the remaining portion of the transmission line as well.”

The 400 kV Ratmate Substation will also have evacuation capacity of around 3,200 MW of power from hydropower projects and substations. The reliable power at various voltage levels at the substation will be available for distribution in Nepal to enhance industrial and commercial activities, the MCA-Nepal said.

Along with three substations, the MCC Nepal Compact will fund the construction of up to 315 km of transmission line from Lapsiphedi, Kathmandu to the Nepal-India border in Nawalparasi (Bardaghat Susta West) under the Electricity Transmission Project.

The bids for the 18 km cross-border transmission line have been received for evaluation and that it aims to award the contract in August, said the MCA-Nepal. “Likewise, preparations are on track to ensure the bids for the remaining 297 km of transmission lines are relaunched at the earliest possible this year,” it said.