Millennium Challenge Account Nepal (MCA-Nepal) has signed the final contract for the construction of a 117-kilometre segment of the electricity transmission line under the Millennium Challenge Corporation (MCC) Nepal Compact, completing all contracts for the 315-kilometre project.

The contract with Ashish–Bozlar JV covers the transmission line from Lapsiphedi Substation in Kathmandu to Ratmate Substation in Nuwakot, continuing to New Hetauda Substation in Makawanpur. Valued at around USD 76.65 million, the project includes the design, installation, testing, and commissioning of 400 kV lines, with a 42-month completion timeline.

MCA-Nepal Executive Director Khadga Bahadur Bisht and Ashish–Bozlar JV representative Nirman Gauli signed the agreement in the presence of MCC and MCA-Nepal officials.

MCC Resident Country Director Diane L Francisco said the contract signing marks a ‘wonderful milestone’ in the Compact’s implementation and highlights the commitment to Nepal’s development.

Earlier contracts covered the 198-kilometre section from Ratmate to New Butwal Substation, including a final 18-kilometre interconnection to the Nepal-India border, along with contracts for the construction of Ratmate, New Damauli, and New Butwal substations.

The $697 million MCC Nepal Compact aims to boost long-term economic growth by strengthening infrastructure, enhancing cross-border energy trade, and improving Nepal’s transportation network, MCA-Nepal said.

MCC is an independent US government agency that provides time-limited grants to countries meeting standards for governance and anti-corruption, while MCA-Nepal, established in 2018, implements MCC Compact projects in Nepal.