KATHMANDU: MCA-Nepal granted an Indian company named Techno Electric and Engineering Company Ltd (TEECL) a $38.89 million contract to build a 400 kV substation in the Tanahun district of Damauli. This substation, with a 1000 megavolt ampere capacity, will be one of the largest in Nepal. By establishing connections with the Ratmate, Lekhnath, and New Butwal substations, the facility will improve the country's power distribution network.

The contract signing was completed by MCA-Nepal Executive Director Khadga Bahadur Bisht and TEECL Director-Commercial Rajiv Agarwal. Dipak Khadka, the minister of energy for Nepal, Dean R. Thompson, the ambassador of the United States, and other authorities attended the ceremony. Minister Khadka emphasized how critical these substations are to supporting Nepal's electrical distribution network, which is essential to the nation's economic growth.

Dr Ram Prasad Ghimire, MCA-Nepal Board Chair, stressed the project's importance in strengthening Nepal's energy sector, while Ambassador Thompson applauded the joint efforts and the project's potential impact on boosting electricity supply, stimulating the economy, and alleviating poverty.

The MCC Nepal Compact also includes funding for 315 km of transmission lines and a roads maintenance project. The bids for an 18 km cross-border transmission line are currently under evaluation, with a contract expected to be awarded in August. MCA-Nepal is also preparing to relaunch bids for the remaining 297 km of transmission lines and is set to launch the Full Depth Reclamation procurement for the roads maintenance project in August.