KATHMANDU: The Millennium Challenges Account-Nepal (MCA-Nepal) has officially signed contracts with an Indian company for the construction of three 400kV substations.
Techno Electric and Engineering Ltd has been awarded the contract for the substation at Damauli, Tanahu, with a project cost of 38.89 million US dollars.
This development completes the contracting process for all three 400kV substations under the MCC Nepal Compact.
The contract was signed in Kathmandu by MCA-Nepal’s Executive Director, Khadga Bahadur Bista, and Rajiv Agrawal, Trade Director of Techno Electric and Engineering Ltd.
The event was attended by Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, and the US Ambassador to Nepal, Dean Thompson.
Minister Khadka stated that the new substation would enhance the electricity distribution system, thereby supporting the country’s economic growth.
He urged all stakeholders to work diligently to ensure the project’s timely completion.
Dr. Ram Prasad Ghimire, Chair of the MCA-Nepal Board of Directors and Secretary at the Finance Ministry, described the contract as a significant step in advancing the MCC-Nepal Compact.
He highlighted that the substations would play a crucial role in expanding Nepal’s energy infrastructure, boosting industrial and trade activities, and supporting a sustainable power supply.
Ambassador Thompson commended the collaborative efforts of the Nepal government, Finance Ministry, Energy Ministry, NEA, and MCA-Nepal in progressing the project.
He emphasized that the MCC-Nepal Compact aims to ensure widespread electricity access, foster economic development, create jobs, and reduce poverty.
Executive Director Bista noted that completing the signing of all three substation contracts within a year of the project’s initiation marks a significant milestone.
The new Damauli substation will be essential for transmitting electricity from Ratmate, Lekhnath, and New Butwal substations.
The MCC-Nepal Compact provides financial support to build these three substations, which will ensure power supply across a 314-km stretch from Lapsephedi in Kathmandu to Bardaghat Susta in Nawalparasi, reaching the India border.
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