KATHMANDU, Aug 15: The Millennium Challenge Corporation (MCC) Nepal Compact has officially resumed its work, with the Millennium Challenge Account-Nepal (MCA-Nepal) signing two major contracts to advance the compact’s Electricity Transmission Project on Thursday.
Under the two contracts, transmission stretches connecting Ratamate-New Damauli and New Damauli-New Butwal will be installed. The jointly funded projects by the governments of Nepal and the United States will cost approximately US $154.5 million, covering the design, installation, testing, and commissioning of 180 kilometers of high-voltage transmission lines.
MCA-Nepal Executive Director Khadga Bahadur Bisht and company representatives signed the agreements in the presence of MCC’s Acting Deputy Vice President, representatives from the MCC Resident Country Mission, officials from the U.S. Embassy, Nepal’s Ministry of Finance, and the Nepal Electricity Authority.
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Issuing a press release, MCA-Nepal stated that the two contracts were awarded through a competitive international bidding process. Angelique-Skipper JV has been selected for the Lot 2 contract of Ratamate-New Damauli, while Waiba-Salasar JV has been awarded the Lot 3 contract of New Damauli-New Butwal.
Speaking at the program, MCC’s Acting Deputy Vice President John Wingle said the contract signings reaffirm the United States’ investment in mutual priorities and Nepal’s development goals.
US Embassy Nepal’s Chargé d’Affaires, Jason Meeks, said the move is more than a construction contract; it is a tangible symbol of the United States’ enduring commitment to Nepal’s growth and prosperity. “Through this partnership, we are not only creating power lines and economic infrastructure but also 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.”
Amid the uncertainty after the MCC projects were suspended following the executive order of US President Donald Trump on January 20, 2025, the recent development has now created hope for the construction of specified infrastructure in Nepal. The US government, through a letter sent to the Ministry of Finance on July 24, informed the Government of Nepal about resuming the projects.
Ghanashyam Upadhyaya, Secretary at the Ministry of Finance and Chairperson of the MCA-Nepal Board of Directors, assured continuous government support for the completion of the MCC-related projects.
The Government of Nepal and MCC signed the MCC Nepal Compact on 14 September 2017. The MCC projects were later officially launched on August 31, 2023.
The MCC Nepal Compact is a US-funded \$697 million investment in Nepal’s long-term economic development, laying a foundation for increased private sector investment. Through its electricity transmission and road maintenance projects, the compact is designed to boost connectivity and unlock economic growth by strengthening critical infrastructure, enhancing cross-border energy trade, and improving Nepal’s transportation network.
