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MCA-Nepal signs contracts worth USD 23.7 million for road maintenance under MCC Compact



KATHMANDU: MCA-Nepal has signed two major contracts worth approximately USD 23.7 million to implement road maintenance works under the Millennium Challenge Corporation (MCC) Nepal Compact.

The agreements were signed in Kathmandu on Monday as part of the Road Maintenance Project under the MCC Nepal Compact. Under the contracts, road upgrading works will be carried out on the Dhan Khola–Lamahi section of the East–West Highway using Full Depth Reclamation and Superpave technologies.

MCA-Nepal has also signed a separate agreement with International Consultants and Technocrats Pvt Ltd for supervision of the road upgrading works on the Dhan Khola–Lamahi section, as well as periodic maintenance of the Narayanghat–Muglin road section.

According to MCA-Nepal Executive Director Khadga Bahadur Bista, the project will upgrade a 40-kilometer stretch of the East–West Highway between Dhan Khola and Lamahi. The road will be expanded to a total width of 12 meters, comprising a seven-meter carriageway and 2.5-meter shoulders on both sides.

Bista said the activities under the agreement are expected to reduce trade and vehicle operating costs while significantly improving road safety.

US Ambassador to Nepal Dean Thompson described the signing as another milestone reflecting shared commitment across all levels of government to strengthen Nepal’s infrastructure and economic growth.

Meanwhile, Joint Secretary at the Ministry of Finance Dr Dhaniram Sharma said the introduction of advanced road maintenance technology for the first time in Nepal has paved the way for sustainable, effective, and cost-efficient road maintenance. He also expressed confidence that MCA-Nepal is capable of completing the project within the stipulated timeframe.

Publish Date : 22 December 2025 20:12 PM

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