MCA-Nepal inks landmark contract agreement for new Butwal Substation construction
Kathmandu: MCA-Nepal has achieved a significant milestone by securing a contract agreement for the construction of the New Butwal Substation, funded by the US Mission Millennium Challenge Corporation (MCC). This marks the inaugural construction contract under the MCC project, showcasing a pivotal step towards enhancing Nepal’s energy infrastructure.
On Thursday, MCA Nepal sealed a contract with Linkson India Pvt Ltd for the construction of a 400 KV New Butwal Substation to be erected in Nawalparasi (Bardghat Susta West). The contract stipulates that the construction of the substation must be finalized within a timeline of 39 months.
In a ceremony held in Nawalparasi, the agreement was formalized in the presence of American Ambassador to Nepal Dean R. Thompson, Executive Director of Nepal Electricity Authority Kulman Ghising, and other distinguished guests. MCA Nepal’s Executive Director Khadga Bahadur Bista and representatives from Linkson India were signatories to the agreement.
Ambassador Thompson emphasized the significance of the compact in addressing Nepal’s energy requirements, reaffirming the US government’s commitment to collaborating with the Nepali government for its successful implementation. He underscored that the 400 kV New Butwal Substation will augment Nepal’s power transmission capacity, ensuring reliable and affordable electricity for domestic consumption, fostering business expansion, industrial growth, and facilitating cross-border electronic trade.
Kulman Ghising, the Executive Director of Nepal Electricity Authority, hailed the New Butwal Substation as a crucial asset for the authority, foreseeing its substantial contribution to cross-border energy trade and bolstering the existing 220 kV substation.
During the program, MCA-Nepal’s Executive Director Bista provided insights into the overall progress of the MCC Nepal Compact implementation, emphasizing the rapid advancement in constructing transmission lines and substations under the power transmission project.
Under this initiative, MCA-Nepal is constructing three substations, with the remaining two slated for Ratmate in Nuwakot and Damauli in Tanahun. Bids for these substations’ construction have been opened, with final contract signings imminent.
Last February, MCA-Nepal’s Board of Directors resolved to expedite the construction of the 18 km segment of the New Butwal-Gorkhapur power transmission line within Nepali territory to facilitate cross-border energy trade. Correspondingly, bids for this segment have been solicited, marking a concerted effort towards advancing Nepal’s energy landscape.