Kathmandu, Jul 31 (PTI) The Millennium Challenge Account-Nepal (MCA-Nepal) on Wednesday signed a contract with India’s Techno Electric and Engineering Company Ltd. (TEECL) to construct a USD 38.89 million 400 kV substation in Damauli, Tanahun district, concluding the task of awarding the contracts for all three 400kV stations under the Millennium Challenge Corporation (MCC) Nepal Compact.
The Nepal government has signed a pact with MCC, under which the US government will provide USD 500 million grant assistance for the construction of transmission lines and upgradation of various road projects.
Once completed, the new Damauli Substation, with a capacity of 1000 Mega Volt Ampere, will be one of the largest substations in the country along with the Ratmate Substation for which the MCA-Nepal signed a contract with the same company in June, according to a statement issued by the MCA-Nepal, the government agency responsible for managing the infrastructure program in the country.
It will connect with the Ratmate, Lekhnath, and New Butwal substations, significantly improving the country’s power distribution network.
The contract was signed by MCA-Nepal Executive Director Khadga Bahadur Bishta and TEECL Director-Commercial Rajiv Agarwal during a special function in Kathmandu on Wednesday.
The signing ceremony was witnessed by Minister for Energy and Water Resources of Nepal Dipak Khadka, US Ambassador Dean R Thompson, Padma Prakash Gupta, Managing Director of TEECL among others.
Speaking on the occasion, Khadka underscored the importance of the substations for strengthening Nepal’s electricity distribution system, which is key to the country’s economic growth. MCA-Nepal Board chairperson Dr Ram Prasad Ghimire shed light on the project’s role in supporting Nepal’s expanding energy sector. PTI SBP ZH ZH
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