Himal Press 
KATHMANDU: Construction work on the Ratmate Substation, the New Damauli Substation and the 297km transmission line under the Electricity Transmission Project of the Millennium Challenge Corporation (MCC) Nepal Compact formally began on Wednesday.
Dr. Ghanshyam Upadhyaya, the Secretary of the Ministry of Finance and MCA-Nepal Board Chair, and U.S. Chargé d’Affaires a.i. Scott Urbom reaffirmed the United States, among others, attended the ground-breaking ceremony at Ratamate of Nuwakot.
“This historic partnership—combining a $550 million grant from the United States and a $197 million investment from the Government of Nepal—is building world-class electricity transmission infrastructure and upgrading vital road networks,” the MCA Nepal said in a statement.
Jointly funded by the Governments of Nepal and the United States through the MCC Nepal Compact, the Electricity Transmission Project will construct high-capacity 400kV substations and 315km of transmission lines. “The infrastructure will strengthen Nepal’s national electricity grid, ease transmission bottlenecks, improve electricity reliability for households and businesses, and support greater participation of Nepal in regional electricity markets,” the statement added.
The 297km transmission line network includes the Ratmate–New Damauli and New Damauli –New Butwal corridors, as well as the Lapsiphedi–Ratmate–New Hetauda section.
“Nepal considers this project a critical investment in the country’s economic future,” Dr Ghanshyam Upadhyaya said. “Strengthening electricity transmission infrastructure is essential to ensuring energy security, promoting investment and industrial growth, and maximizing the benefits of Nepal’s energy potential.”
Similarly, US Chargé d’Affaires a.i. Scott Urbom reaffirmed the United States’ longstanding partnership with Nepal and its commitment to the MCC Nepal Compact. “Through this Compact, we are building the backbone of Nepal’s energy future. Reliable power will flow across the country and beyond its borders. For families, this means lights that stay on. For factories and farms, it means steady energy to drive production,” he said. “For Nepali businesses, it unlocks new horizons for growth.”
Also speaking on the occasion, MCC Resident Country Director Diane Francisco emphasized the project’s long-term significance for Nepal’s economic growth and regional energy integration.
Four contractors are executing the work. Techno Electric and Engineering Company Ltd of India is carrying out the construction of the Ratmate and New Damauli substations; Ashish–Bozlar JV is constructing the 117km Lapsiphedi–Ratmate–New Hetauda transmission line section; and Angelique–Skipper JV and Waiba–Salasar JV are undertaking the construction of the Ratmate–New Damauli and New Damauli–New Butwal transmission line sections, respectively.
