Kathmandu, May 9
MCA-Nepal has entered into a contract agreement for the construction of the New-Butwal Substation to be built with the grant of the US Mission Millennium Challenge Corporation (MCC). This is the first construction contract under the MCC project.
MCA Nepal signed a contract with Linkson India Pvt Ltd for the construction of a 400 KV New-Butwal substation to be built at Nawalparasi (Bardghat Susta West) on Thursday. According to the contract, the construction of the substation should be completed within 39 months.
In the presence of American Ambassador to Nepal Dean R. Thompson, Executive Director of Nepal Electricity Authority Kulman Ghising and others, MCA Nepal Executive Director Khadga Bahadur Bista and Linkson India representatives signed the agreement in a ceremony held in Nawalparasi.
At the event, Ambassador Thompson said that the compact is useful for addressing Nepal’s energy needs and the US government is committed to cooperating with the Nepali government to ensure its construction. “This 400 kV new Butwal substation will improve the power transmission capacity of Nepal, which is providing reliable and affordable electricity for domestic consumption, expanded business, industrial organizations and cross-border electronic trade,” he said.
Executive Director of Nepal Electricity Authority Kulman Ghising said that this substation is a priority structure of Nepal Electricity Authority. He also said that this substation will contribute significantly to cross-border energy trade and will help the existing 220 kV substation.
In the program, the Executive Director of MCA-Nepal, Bista, informed about the overall progress being made during the implementation of the MCC Nepal Compact. “MCA-Nepal is rapidly advancing the entire work related to the construction of transmission lines and substations under the power transmission project.”
MCA-Nepal is constructing three substations under this project. The remaining two substations are being constructed at Ratmate in Nuwakot and Damauli in Tanahun. Financial proposals submitted by technically qualified contractors for the construction of these two substations have also been opened. Bista informed that final preparations are being made for signing the contract for the construction of the remaining two substations.
The meeting of the Board of Directors of MCA-Nepal held last February decided to immediately proceed with the construction of the 18 km section of the New Butwal-Gorkhapur power transmission line in the Nepali territory to advance the cross-border energy trade. Accordingly, the bids for that section have been invited.
