Himal Press 
Photo Courtesy: US Embassy in Kathmandu
KATHMANDU: Linxon India Pvt Ltd has been awarded a contract to build the 400 kV New Butwal Substation in Nawalparasi West.
The project is a part of the Electricity Transmission Project of the Millennium Challenge Corporation (MCC)-Nepal Compact. It is the first MCC-Nepal Compact project to have been awarded.
Khadga Bahadur Bista, executive director of the Millennium Challenge Account-Nepal (MCA), and Myanak Pande of Linxon India Pvt Ltd signed the contract agreement amid a ceremony in Nawalparasi on Thursday.
Nepal Electricity Authority (NEA) Executive Director Kul Man Ghising, US Ambassador to Nepal Dean R. Thompson and local people’s representatives, among others, were present at the signing ceremony.
Speaking on the occasion, Ambassador Thompson said the US government is committed to working with the Government of Nepal to ensure that the compact delivers on Nepal’s energy needs. “The 400 kV New Butwal Substation will improve Nepal’s transmission capacity, contributing to reliable and affordable electricity for households, commercial and industrial enterprises, and cross-border electricity trading,” he added.
As per the project agreement, Linxon India will have to complete the project in 39 months.
The Electricity Transmission Project will build approximately 300 km of high-voltage lines, including a link to the Indian border, to facilitate Nepal’s energy trade.
The US Government’s MCC signed a $500 million compact with the Nepali government in September 2017. The compact aims to maintain road quality, increase the availability and reliability of electricity, and facilitate cross-border electricity trade between Nepal and India. The government is chipping in $197 million in MCA projects.
