MCA-Nepal signs contracts for three substations of 400 KV each
KATHMANDU: Millennium Challenge Account Nepal (MCA-Nepal) Development Committee has awarded a contract to the Indian company Techno Electric and Engineering for the construction of a 400KV substation in Damauli, Tanahun district, at a cost of $38.89 million.
This contract completes the agreements for all three 400KV substations under the MCC Nepal Compact.
The contract was signed by MCA-Nepal's Executive Director, Khadga Bahadur Bista, and Techno Electric and Engineering's Trade Director, Rajiv Agrawal, during a ceremony attended by Energy Minister Dipak Khadka and US Ambassador to Nepal, Dean R Thompson, in Kathmandu on Wednesday.
Energy Minister Khadka stated that the substation would strengthen the electricity distribution system, promoting economic prosperity. He urged all stakeholders to ensure the project's timely completion.
Ram Prasad Ghimire, Chair of the MCA-Nepal Board of Directors and Secretary at the Finance Ministry, highlighted the progress made under the MCC Nepal Compact, noting the substations' importance for Nepal's energy expansion and economic development. He added that the substations would boost industrial and trade activities and contribute to a sustainable power supply.
By RSS
Ambassador Thompson praised the collaborative efforts of the Nepal government, including the Finance Ministry, Energy Ministry, NEA, and MCA-Nepal, in advancing the project, which aims to build a prosperous future for Nepalis. He emphasised the MCC Nepal Compact's role in ensuring electricity access, supporting economic development, and reducing poverty.
Executive Director Bista noted the milestone achievement of signing contracts for all three substations within a year of the project's commencement.
The Damauli substation will be crucial for transmitting electricity from Ratmate, Lekhnath, and New Butwal substations. The MCC-Nepal Compact is funding the construction of these substations to ensure power supply along the 314-km route from Lapsephedi in Kathmandu to Bardaghat Susta in Nawalparasi, reaching the Indian border.
