The Millennium Challenge Account-Nepal (MCA-Nepal) on Thursday signed two contracts under the MCC Nepal Compact to advance the electricity transmission project.

The agreements mark renewed momentum and shared commitment from US and Nepal governments following the successful completion of the foreign aid review, the MCA-Nepal said in a statement.

The Ratmate-New Damauli transmission line project has been awarded to Angelique-Skipper JV, and the New Damauli to the New Butwal project to Waiba-Salasar JV.

Combined, the contracts are valued at approximately $154.5 million and cover the design, installation, testing, and commissioning of 180 kilometres of high-voltage transmission lines.

The agreements were signed by MCA-Nepal Executive Director Khadga Bahadur Bisht and company representatives in the presence of MCC’s Acting Deputy Vice President John Wingle, officials from the MCC resident country mission, the US Embassy, Ministry of Finance, and the Nepal Electricity Authority.

“In signing these contracts, MCC reaffirms the United States’ investment in mutual priorities and Nepal’s development goals,” said Wingle. “We are honoured to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal and enhance regional power trade and integration.”

Ghanashyam Upadhyaya, secretary at the Ministry of Finance and Chairperson of the MCA-Nepal Board of Directors, appreciated US financial support to materialise the government’s plan to construct transmission lines and substations, and expressed continued backing for the programme.

US Embassy Nepal’s Chargé d’Affaires Jason Meeks said the contracts symbolise the US’s lasting commitment to Nepal’s development and long-term growth. “This milestone is more than a construction contract; it’s a tangible symbol of the United States’ enduring commitment to Nepal’s growth and prosperity,” he said. “Through this partnership, we are creating power lines and economic infrastructure and accelerating Nepal’s long-term growth. The MCC compact is a cornerstone of cooperation between Nepal and the United States. We’re proud to be moving forward together to benefit all citizens of Nepal.”

MCA-Nepal Executive Director Bisht said that this milestone reflects the shared commitment of all stakeholders and the government of Nepal to this national pride project. “We remain focused on successful implementation through sustained collaboration,” he said.

The MCC Nepal Compact represents a $697 million investment in Nepal’s long-term economic development. The compact aims to boost connectivity, strengthen critical infrastructure, enhance cross-border energy trade, and improve Nepal’s transportation network through its electricity transmission and road maintenance projects, laying a foundation for increased private sector investment.