Tuesday, June 2nd, 2026

MCA-Nepal launches Butwal Energy Project to boost power trade



KATHMANDU. Millennium Challenge Account Nepal (MCA-Nepal) today commemorated the initiation of construction of the 18-kilometer (km) transmission line and the New Butwal Substation in Sunawal, Nawalparasi (Bardaghat Susta West).

The new infrastructure, part of the Millennium Challenge Corporation (MCC) Nepal Compact, will strengthen Nepal’s electricity grid and establish a major energy trade interconnection between Nepal and India.

MCA-Nepal Executive Director Khadga Bahadur Bisht joined Minister of Finance Rameshore Prasad Khanal, the U.S. Ambassador Dean Thompson, and MCC Resident Country Director Diane Franscisco at the Construction Initiation event.

Minister Khanal said, “This project reflects the Government of Nepal’s strong commitment to expanding clean energy access, enhancing regional power trade, and supporting our national goal of long-term economic growth. With the support of MCC and MCA-Nepal, we are turning agreements into action for the benefit of the country.”

“The United States is proud to stand with Nepal as a committed partner in building a more reliable energy system,” said the U.S. Ambassador Dean Thompson. “Projects like this transmission line and substation will not only help keep the lights on for families and businesses, but also create opportunities for trade, growth, and prosperity across the region. Today’s event is a testament to what we can achieve together.”

“Today marks a new chapter in strengthening Nepal’s energy security,” said Executive Director Bisht. “The transmission line and substation will create new opportunities for power trade and bring long-term benefits to our citizens. MCA-Nepal is proud and committed to implementing this project in close partnership with the Government of Nepal and MCC.”

Publish Date : 26 November 2025 13:24 PM

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