MCC Nepal signs $154M contracts to expand power transmission network.
Kathmandu, August 14, 2025 — Nepal’s Millennium Challenge Corporation (MCC) Compact entered a new phase of implementation today with the signing of two major power transmission contracts worth more than $154 million, signaling renewed momentum and commitment from both Nepal and the United States. The agreements, signed by the Millennium Challenge Account-Nepal (MCA-Nepal), are part of the Compact’s landmark Electricity Transmission Project, which is designed to modernize Nepal’s energy infrastructure and strengthen its role in regional power trade.
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| Officials from Nepal and the United States witness the signing of $154 million contracts for high-voltage transmission lines under the MCC Nepal Compact in Kathmandu on August 14, 2025. |
The signing follows the successful completion of the foreign aid review process and represents a breakthrough for the MCC Nepal Compact, one of the largest bilateral infrastructure investments in Nepal’s history. After an international competitive bidding process, Lot 2 (Ratmate to New Damauli) was awarded to Angelique-Skipper JV, while Lot 3 (New Damauli to New Butwal) was awarded to WAIBA-SALASAR JV. Together, the contracts cover the design, installation, testing, and commissioning of 180 kilometers of high-voltage transmission lines that will form a critical backbone of Nepal’s power grid.
The agreements were signed in Kathmandu by MCA-Nepal Executive Director Khadga Bahadur Bisht and representatives of the contracting companies, in the presence of senior government officials and development partners. Attendees included MCC Acting Deputy Vice President John Wingle, U.S. Embassy Chargé d’Affaires Jason Meeks, representatives from the MCC Resident Country Mission, officials from Nepal’s Ministry of Finance, and executives from the Nepal Electricity Authority.
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Speaking at the event, MCC’s Acting Deputy Vice President John Wingle underscored the strategic importance of the project, noting that the contracts reaffirm the United States’ partnership with Nepal in advancing mutual development goals. “In signing these contracts, MCC reaffirms the United States’ investment in Nepal’s development priorities,” he said. “We are honored to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal while laying the foundation for enhanced regional energy integration and trade.”
Representing the Government of Nepal, Finance Secretary Ghanashyam Upadhyaya, who also chairs the MCA-Nepal Board of Directors, praised the U.S. Government’s continued support for Nepal’s infrastructure priorities. He stressed that the transmission line expansion would not only support domestic electricity distribution but also unlock Nepal’s potential in cross-border power exchange. “This milestone reflects our government’s determination to expand the transmission network and improve energy security. We deeply appreciate the U.S. Government’s support and will continue backing MCA-Nepal for successful delivery,” he said.
U.S. Embassy Nepal’s Chargé d’Affaires Jason Meeks framed the signing as a landmark moment in U.S.–Nepal relations, calling it “more than just a construction contract.” He said the agreements represent a tangible symbol of the United States’ enduring commitment to Nepal’s growth and prosperity. “Through this partnership, we are not only creating transmission lines and economic infrastructure but also accelerating Nepal’s long-term growth. The MCC Compact is a cornerstone of cooperation between Nepal and the United States, and we are proud to be moving forward together to benefit all citizens of Nepal,” he added.
MCA-Nepal Executive Director Khadga Bahadur Bisht described the signing as a demonstration of trust and collaboration between all stakeholders. He emphasized that the transmission project is a “national pride project” for Nepal, reflecting the shared determination of the Government of Nepal, the U.S. Government, and development partners to achieve meaningful results. “We appreciate the U.S. Government’s unwavering support and final approval to move the compact forward. This milestone reflects the shared commitment of all stakeholders and the Government of Nepal to this National Pride Project. We remain focused on successful implementation through sustained collaboration,” he said.
The MCC Nepal Compact, signed in 2017, represents a $697 million investment in Nepal’s long-term economic development. It is jointly funded by the Government of Nepal and the United States through MCC, with the Electricity Transmission Project and Road Maintenance Project as its two main pillars. The Compact is expected to expand electricity access, improve road connectivity, unlock opportunities for private sector investment, and ultimately lay the foundation for sustained economic growth. By strengthening critical infrastructure and enabling Nepal to harness its abundant hydropower resources, the Compact also positions the country as a key player in South Asia’s evolving energy landscape.
About MCC
The Millennium Challenge Corporation (MCC) is an independent U.S. government agency created in 2004 with a mission to reduce global poverty through economic growth. MCC provides large-scale, time-limited grants to countries that demonstrate commitment to good governance, economic freedom, and investment in people.
About MCA-Nepal
MCA-Nepal is a government-owned legal entity established in April 2018 under the Development Board Act, 1956 by the Government of Nepal to implement the MCC Nepal Compact projects. Its mandate is to deliver on the Compact’s Electricity Transmission and Road Maintenance Projects to strengthen Nepal’s infrastructure and advance sustainable economic development.
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