US Ambassador to Nepal Dean R. Thompson called on Minister for Energy, Water Resources and Irrigation Dipak Khadka on Wednesday.

In the meeting held at the Ministry of Energy, Water Resources and Irrigation, various aspects of energy cooperation between the two countries and the implementation of the Millennium Challenge Corporation (MCC) project were discussed.

During the meeting, Energy Minister Khadka said that although the work on the projects being carried out through the MCC project is continuing, the MCC has been on hold for some time, which has created some confusion. He expressed confidence that the MCC project will continue to move forward and that the US will provide additional support in the energy sector.

During the meeting, US Ambassador Thompson said that the US will continue to support and assist Nepal's energy sector.

He said that every possible initiative and effort is being made to move forward the MCC project.

He urged for support from the government of Nepal to continue the projects currently being carried out under the MCC.

The MCA project, which is being implemented under the MCC, will cost USD 500 million from the US and USD 197 million from Nepal.

Earlier on January 2025, the MCC Board of Directors approved USD 50 million of additional funding for the Nepal Compact.

Under the project, 400 kV transmission lines and associated substations will be constructed from Lapsiphedi-Ratmate, Ratmate-Damauli, Damauli-Butwal and Butwal-Gorakhpur.

Representatives of MCC and Millennium Challenge Account-Nepal and high-ranking officials of the ministry participated in the meeting.