The US-funded Millennium Challenge Corporation (MCC) Compact project has gained momentum. International tenders have been invited for the construction of three large substations to be built under the project.

The Millennium Challenge Account Nepal Development Committee (MCA Nepal) issued a public notice on Friday and invited bids for the construction of three substations of 400 KV capacity under the MCC project.

MCA Nepal has invited tenders for substations to be constructed at Ratmate, New Damauli and New Butwal. It has invited tenders to build on design, supply, delivery, installation, testing, commissioning model.

The company selected from the tender process will have to prepare the design and construct the transmission line. MCA Nepal has invited tenders with a deadline of June 30, 2023. “Bidders interested in constructing the project's substation are required by MCA Nepal to pay $425,000 USD for the first lot Ratmate Substation, and $260,000 for the second lot New Damauli Substation. The bidders need to deposit US$600,000 US dollars and US$270,000 as bid security for the third lot, ie, new Butwal substation,” reads the notice.

According to an employee of MCA Nepal, it is estimated that the budget for the substation will be USD 114 million i.e. about Rs 15 billion.

In the third week of last November, MCA Nepal divided the transmission lines into three lots and invited international bids. It had called for tenders with a deadline of March 27, 2023.

MCA Nepal has called for tenders with a deadline of 119 days. According to the deadline, one day is left to participate in the tender. Tenders have been invited for construction of a 400 KV transmission line (117 km in Lapsephedi-Ratmate-New Hetauda) in the first lot. Similarly, a 90 km transmission line of 400 KV capacity (up to Ratmate-New Damauli) has been called for in the second lot. In the third lot, a tender was invited for the construction of a 108 km transmission line (New Damauli-New Butwal to the Indian border) of 400 KV capacity.

According to a senior employee of MCA Nepal, the contractor company participating in the bidding will be selected within the next month. "The construction company will be decided only after evaluating the technical and financial proposals," the source said.