“Out of the 315 km long transmission line project, the stretch along the Butwal-Gorakhpur segment has been put into priority citing the growing scope of Nepal-India power trade”

The Millenium Challenge Account (MCA) Nepal is expediting the construction of the 18 km stretch of Butwal-Gorakhpur power transmission line.

The 40th board meeting of the MCA-Nepal held on Wednesday decided to advance the work on the section of the cross-border power transmission line on a priority basis. Of the 315 km transmission line project taken under the Millenium Challenge Corporation (MCC), the implementing agency has put into priority the cross-border transmission lines. “Expediting the cross-border section will help to meet the obligations of the cross-border power trade agreement between Nepal and India,” reads a press statement issued by the MCA-Nepal.

Nabin Raj Singh, joint-secretary and spokesperson at the Ministry of Energy, Water Resources and Irrigation, said MCA-Nepal Board made this determination collectively owing to the critical importance of this segment to the Government of Nepal (GoN) and the Nepal Electricity Authority (NEA). According to him, the separation of the 18 km segment from the larger transmission line network will enable a quicker procurement process and its implementation in order to ensure that the line is completed on time by May 2026 to connect with the lines under construction on the Indian side of the border.

The cross-border transmission line is a critical component of the Electricity Transmission Project and will facilitate cross-border electricity trade to meet Nepal’s needs. In October 2019, both the Governments of Nepal and India agreed to the financing and ownership framework that will govern the implementation of the New Butwal – Gorakhpur cross-border transmission line.

For the remaining 297 km transmission line, MCA-Nepal continues to work to procure the services of design-build contractors to complete the construction of the transmission lines within the agreed timeline.

MCA-Nepal has expressed its commitment to ensuring the transmission lines are built on time, within budget, and in accordance with GoN and MCC’s environmental and social standards.