MCC Nepal marks first year of implementation with expected progress

KATHMANDU, AUGUST 22: Significant achievements have been made in the first year of implementing the Millennium Challenge Corporation (MCC) Nepal Compact. Progress on the project was shared at a news conference held yesterday to mark the completion of one year of MCC Nepal Compact implementation.

On the occasion, the Executive Director of Millennium Challenge Account (MCA) Nepal, Khadga Bahadur Bisht, announced that the contractor for the 18-km cross-border transmission line segment has been selected and is expected to be awarded the contract by August 2024. Significant progress has also been made in preparing the site for contractors' access.

He also mentioned that a tender would be called again this year for the construction of a 297-kilometer transmission line. Between May and July 2024, MCA-Nepal awarded and signed contracts worth approximately 126 million US dollars for the construction of three 400 KV GIS substations in Nawalparasi West, Nuwakot, and Tanahu. It was noted that the New Damauli substation and the Ratmate substation, each with a capacity of 1000 MVA, will be the largest substations in the country.

A contract worth 1.2 million US dollars was signed on July 22, 2024, to provide advisory support for the economic, financial, technical, legal, and policy/institutional regulatory work of the Electricity Regulatory Commission. Furthermore, a contract worth 2.4 million US dollars was signed on July 15, 2024, to provide consultancy services aimed at enhancing electricity use, with a focus on preparing Municipal Energy Plans and developing capacities for the productive use of electricity in affected wards under the MCA Partnership Program, a benefit-sharing activity under the Electricity Transmission Project.

According to the MCC, the Initial Environmental Examination (IEE) Report for road maintenance works on the 40-km segment of the road from Dhan Khola to Lamahi on the East-West Highway has been approved. MCA-Nepal plans to initiate the procurement of road maintenance works using Full Depth Reclamation (FDR) technology later this year.

A two-year, one-million-dollar Livelihood Restoration Program for 270 project-affected people in the Ratmate Substation area concluded on May 30, 2024, paving the way for new businesses and prosperity.

Compensation Fixation Committees have been formed in nine districts to determine compensation for the land, with compensation already fixed in Dhading, Makawanpur, and Nawalparasi West. Forest census work has been completed in nine out of ten project-affected districts, and MCA-Nepal is now conducting verification to apply for forest permits.

At the event, the Resident Country Director of MCC in Nepal, Diane Francisco, expressed confidence that the MCC project would be completed within the stipulated time and expressed satisfaction with the Nepal government's facilitation in expediting the project. He added that the project is not only aimed at lifting Nepal out of poverty but also at addressing various other challenges.

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Similarly, US Ambassador to Nepal, Dean Thompson, remarked that all stakeholders were cooperating with the MCC to ensure its timely completion and appreciated the Nepal government's support in this effort.