Millennium Challenge Account-Nepal has signed a contract for an 18 km cross-border transmission line under the Millennium Challenge Corporation (MCC) Nepal Compact.

This new milestone reflects the unwavering commitment from all stakeholders to enhancing regional energy trade between Nepal and India, MCA-Nepal said in a statement on Friday.

The contract, valued at USD 12.36 million, has been awarded to an Indian company Transrail Lighting Limited which is entrusted to construct the transmission line from the 400 kV New Butwal Substation in Bardhaghat, Nawalparasi West to the Nepal-India border within 21 months.

The contract was signed by Khadga Bahadur Bisht, executive director of MCA-Nepal, and Amol Wankhede, representative of Transrail Lighting Ltd in the presence of officials from the Ministry of Finance, National Electricity Authority (NEA) MCC and MCA-Nepal.

Ram Prasad Ghimire, secretary of the ministry of finance and MCA-Nepal board chair, said that along with the signings of the three substation contracts worth USD126 million and the 18 km transmission line project is set to play an important role in helping Nepal make strides in achieving its domestic power goals and reinforcing Nepal’s position in the regional energy market.

Kul Man Ghising, managing director at NEA, said the project is a critical link that will enhance Nepal’s energy infrastructure and deepen our cross-border energy cooperation with India.

“This accomplishment is a testament to the strategic foresight and dedication of all involved,” he said.

Addressing the signing ceremony, Diane L Francisco, MCC resident country director, said the successful contracting of the 18 km cross-border transmission line marks a major milestone in our shared journey to transform Nepal’s energy landscape and economic future.

“This achievement is one of many successes of the MCC Nepal Compact in the past year, but it is particularly significant as it paves the way for the larger 297 km transmission line project,” he said.

Khadga Bahadur Bisht, executive director of MCA-Nepal, said the contract signing is a clear indicator of the progress being made.

“The 18 km cross-border segment, separated from the larger project to expedite its completion, shows the government of Nepal’s commitment to meeting the project goals of this National Pride Project, and reaffirms that collaborative effort from all stakeholders leads to a successful outcome.”

For the remaining 297 km of transmission line, MCA-Nepal’s preparations are on track to launch the bid before the end of this year, it said in a statement.