KATHMANDU: The Millennium Challenge Account Nepal (MCA-Nepal) has finalized a contract with Linxon India Pvt. Ltd. for the construction of the 400 kV New Butwal Substation in Nawalparasi district, Lumbini Province. This Gas Insulated Switchgear (GIS) substation is scheduled to be completed within 39 months. The signing ceremony, held in Bhumahi, Nawalparasi, saw the presence of key figures including Kul Man Ghising, Managing Director of Nepal Electricity Authority (NEA), and U.S. Ambassador to Nepal, His Excellency Dean R. Thompson, along with local authorities and elected representatives.
Ambassador Thompson reaffirmed the U.S. Government's commitment to collaborating with Nepal to address its energy needs through the compact. He emphasized that the new substation would enhance Nepal's transmission capacity, leading to more reliable and affordable electricity for households, fostering commercial and industrial growth, and facilitating cross-border electricity trading.
NEA Managing Director Ghising underscored the importance of the 400 kV substation in augmenting cross-border energy trade, complementing the existing 220 kV substation, and meeting NEA's priorities.
MCA-Nepal Executive Director Khadga Bahadur Bisht provided an overview of the progress made in implementing the MCC Nepal Compact, highlighting efforts to expedite construction activities for transmission lines and substations. He mentioned that the procurement process for the remaining two substations, located in Ratmate (Nuwakot district) and Damauli (Tanahun district), is nearing completion.
Additionally, MCA-Nepal is overseeing the selection of contractors for the two remaining substations. The decision to expedite the construction of the Nepal portion of the New Butwal-Gorakhpur power transmission line was made during the March board meeting of the MCA-Nepal Board, chaired by the Secretary at the Ministry of Finance. This initiative aims to facilitate timely initiation of cross-border power trade with India, as outlined in the agreement between the two countries.
