KATHMANDU, Sept 14: At a time when most infrastructure projects in Nepal face criticism for delays, an 18-kilometre transmission line built under the US-funded Millennium Challenge Corporation (MCC) grant programme has been completed in about nine months. The Millennium Challenge Account Nepal Development Committee (MCA Nepal) completed the Nepal-India cross-border transmission line within the scheduled timeframe, with an investment of about Rs 2 billion.
The transmission line was built to strengthen Nepal’s electricity grid and expand cross-border power connectivity. According to the project, the line was constructed at a cost of US$12.8 million, about Rs2 billion, to connect the 400 kV New Butwal substation with the Indian border.
The project is expected to play an important role in strengthening the electricity grid and expanding cross-border energy connectivity. Ministry of Finance Secretary Dr Ghanshyam Upadhyaya said the transmission line would make it easier to expand cross-border energy networks.
“The transmission line has helped strengthen electricity infrastructure,” said Upadhyaya, who also chairs the MCA Nepal Board of Directors. “The achievement was possible because of a long-term commitment to development and the support provided through the MCC Nepal Compact.”
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Nepal Electricity Authority Acting Executive Director Dirghayu Kumar Shrestha said the cross-border transmission line would bring broad benefits. “The construction of the transmission line is an achievement for Nepal’s energy sector,” Shrestha said. “Completing the project within the deadline is commendable.”
Of the total 315 kilometres of transmission lines planned under the MCC programme, 18 kilometres have now been completed, leaving 297 kilometres to be built. Construction is progressing on the remaining sections, including the Lapsiphedi Ratmate New Hetauda, Ratmate New Damauli and New Damauli New Butwal sections. Construction of three substations is also underway.
MCA Nepal Executive Director Khadga Bahadur Bisht described completion of the cross-border transmission line as an important achievement. “The transmission line will help strengthen the Nepal India electricity grid and energy cooperation,” Bisht said.
Projects under the MCC programme are expected to strengthen Nepal’s national electricity transmission network and make the domestic power supply system more reliable. MCC Resident Country Mission Director Diane Francisco said the progress showed that results could be achieved within a short period when stakeholders worked together toward a common goal.
Connecting the country’s major energy centres through transmission lines will further improve electricity transmission. The total investment under the Nepal US MCC partnership amounts to US$747 million, including US$550 million from the United States and US$197 million from the Government of Nepal. The original US grant was US$500 million, but it was later increased by US$50 million to US$550 million.
The government has set a target of exporting 10,000 MW of electricity within the next decade. The 400 kV transmission lines and new substations are expected to contribute to achieving that target.
Energy experts say electricity management remains challenging because transmission infrastructure has not kept pace with rising generation capacity. Projects being built under the MCC programme are expected to help address this problem.
The implementation of the MCC project in Nepal was preceded by intense political debate. The project moved ahead after Parliament approved it with a 12-point interpretive declaration.
Despite the disputes, obstacles and concerns surrounding its launch, construction under the programme is now moving ahead at a faster pace. Once completed, the new substations and transmission lines are expected to strengthen Nepal’s energy security, improve the reliability of electricity supply and help establish Nepal as an important partner in regional energy trade in South Asia.
