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All three MCC substations have signed contracts. When will the transmission lines be opened?

Broadcast United News Desk
All three MCC substations have signed contracts. When will the transmission lines be opened?

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July 16, Kathmandu. The project is funded by the US cooperative mission Millennium Challenge Corporation (MCC) and invested by the government. The construction contracts of the three substations have all been signed.

MCA Nepal has signed an agreement with Technoelectric and Engineering Limited of India to build a new Damauli substation with a capacity of 400 KV at Damauli in Tanahun.

The agreement was signed on Wednesday by Khadga Bahadur Bista, executive director of MCA Nepal, and Rajeev Agarwal, business director of Technoelectric and Engineering Limited.

According to MCA Nepal, an agreement has been reached with Technoelectric and Engineering to build the substation at a cost of $38.8 million (about Rs 5.16 billion).

Earlier, an agreement was also signed with the company to build the Ratmate substation in Nuwakot. Both substations will be among the largest in Nepal with a capacity of 1,000 MVA.

According to Nepal MCA, the new Damauli substation will serve as an important bridge for power transmission between Ratmat, Lekhnath and New Butwal substations.

In the programme, Energy Minister Deepak Khadka said the three substations will make a significant contribution to strengthening Nepal’s power distribution system, thereby paving the way for economic prosperity. He called on stakeholders to complete the project on time.

Dr. Ramprasad Ghimire, Secretary of Nepal’s Ministry of Finance and Chairman of the MCA Board of Directors, said.

said Dean R. Thompson, U.S. Ambassador to Nepal.

Bista, Executive Director of MCC Nepal, said that the signing of the agreements for the construction of all three substations on the eve of the first anniversary of the implementation of the MCC Nepal Compact is of great significance.

Three bus stations and a 315-km transmission line from Lapsiphedi in Kathmandu to Nawalparasi (Bardghat Susta West) to the Nepal-India border are also being constructed with funding from MCC. According to MCA Nepal, bids for the construction of the 18-km long cross-border transmission line are being evaluated. MCA Nepal also informed that the contract agreement for the project will be completed in July this year.

According to Nepal MCA, the construction of the remaining 297 km of transmission line is being prepared for bidding again this year.

Similarly, the MCA also said that they are preparing to invite tenders for the procurement of full-depth reclamation works for the road maintenance project within August this year.

When is the transmission line contract signed?

Transmission line, substation and road improvement projects are being implemented with MCC allocating USD 500 million and Nepal government contributing USD 195 million.

Of these, 315 km long 400KV transmission line, three 400KV substations and 77 km road upgradation project from Bhaluwang in Dang to Shivkhola in Banke will be implemented in this budget.

Previously, on June 8 last year, the transmission line was divided into three sections for bidding, and five companies in the proposed project were considered technically qualified.

The bidding process was completely cancelled on October 26 as the lowest bids from these companies were 66% higher than the cost estimate of the MCA.

Since then, the New Butwal-Gorakhpur 18km cross-border transmission line has been separated and bids received for 2 Chait are being evaluated, according to MCA Nepal. According to MCA Nepal, its goal is to sign the construction contract in July this year.

According to MCA Nepal, the construction of the remaining 297 km of transmission line is being prepared for another tender as soon as this year.

The MCA project must be completed within five years, otherwise the US subsidies will be cancelled. The project was implemented on August 13 last year. The countdown starts from the day the project is implemented, that is, the day it takes effect, and the US will recover the unused funds during the five-year period. In this case, the implementation of the project needs to be accelerated.

Although Nepal and the United States signed the MCC agreement on August 14, 2074, its implementation was delayed due to political hurdles. The government established MCA Nepal in 5 Baisakh 075 as the responsible agency for implementing the project.



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