MCA-Nepal Relaunches Bid for 297-Kilometer Power Transmission Line

Millennium Challenge Account Nepal (MCA-Nepal) has reopened bids for the construction of a 297-kilometer power transmission line under the Millennium Challenge Corporation (MCC) Nepal Compact. This critical project aims to enhance Nepal's power transmission capacity, with the submission deadline set for January 30, 2025.

The construction has been divided into three sections: Lapsiphedi-Ratmate-New Hetauda, Ratmate-New Damauli, and New Damauli-New Butwal. According to a press release, the relaunch incorporates improvements to address challenges identified in the previous bidding process. Key updates include optimized designs, better access to tower sites, and revised commercial terms based on bidder feedback, ensuring the proposals are cost-effective and feasible.

In August 2024, MCA-Nepal awarded a USD 12.36 million contract to Transrail Lighting Ltd. for an 18-kilometer segment of the Butwal-Gorakhpur transmission line, scheduled for completion in 21 months. Executive Director Khadga Bahadur Bisht expressed confidence that the redesigned bidding requirements for the remaining 297 kilometers would attract competitive proposals.

Over the past year, the MCC Nepal Compact has seen significant progress, including ongoing work on three 400 kV substations and the 18-kilometer transmission line. MCA-Nepal remains committed to executing the remaining segments while adhering to the environmental and social standards set by the Government of Nepal and MCC.