Damauli Substation serves as a critical connection point for power flow with the Ratmate, Lekhnath, and New Butwal Substations

In a significant development, MCA-Nepal has finalized the contract for the construction of a 400 kV substation in Damauli, Tanahun district, with India's Techno Electric and Engineering Company Ltd (TEECL). Valued at $38.89 million, this deal completes the award of contracts for all three 400 kV substations under the Millennium Challenge Corporation (MCC) Nepal Compact.

The new Damauli Substation, with a capacity of 1000 Mega Volt Ampere, will serve as a critical point of connection for power flow with the Ratmate, Lekhnath, and New Butwal Substations. It will be one of the largest in Nepal, significantly enhancing the country's power distribution network.

The contract was signed by MCA-Nepal Executive Director Khadga Bahadur Bisht and TEECL Director-Commercial Rajiv Agarwal. The signing ceremony was attended by Nepal's Energy Minister Dipak Khadka, US Ambassador to Nepal Dean R Thompson, and other officials.

Addressing the function, Minister Khadka emphasized the importance of the substations for strengthening Nepal's electricity distribution system, crucial for economic growth. MCA-Nepal Board Chair Dr. Ram Prasad Ghimire highlighted the project's role in supporting Nepal's growing energy sector.

Ambassador Thompson praised the collaborative efforts and the project's potential to power Nepali homes, stimulate the economy, and reduce poverty.

The MCC Nepal Compact also includes funding for 315 km of transmission lines and a roads maintenance project. Bids for the 18 km cross-border transmission line have been received for evaluation, with MCA-Nepal aiming to award the contract in August.

Preparations are on track to relaunch bids for the remaining 297 km of transmission lines this year. For the Roads Maintenance Project, MCA-Nepal is preparing to launch the Full Depth Reclamation procurement in August, according to MCA-Nepal.

“This year, the United States and Nepal celebrate 77 years of strong bilateral relations. Since 1947, our nations have shared an open, responsive, and collaborative friendship. The Millennium Challenge Corporation (MCC) has been a proud part of this partnership since 2011, working to reduce poverty through inclusive and sustainable economic growth,” stated the US Embassy in Kathmandu in its social media post on Wednesday.