Nepal and India's TEECL Sign $38.89M Deal for Major Substation Project

MCA-Nepal inked a contract with India's TEECL to build a $38.89 million 400kV substation in Damauli. This concludes the contracts for three 400kV stations under the MCC Nepal Compact. The project, part of a $500 million US grant, aims to enhance Nepal's power distribution network.

The Millennium Challenge Account-Nepal (MCA-Nepal) finalized a contract with India's Techno Electric and Engineering Company Ltd. (TEECL) on Wednesday for the construction of a USD 38.89 million 400 kV substation in Damauli, Tanahun district. This contract completes the awarding process for all three 400 kV stations under the Millennium Challenge Corporation (MCC) Nepal Compact.

Nepal's government has entered a pact with the MCC, which includes a US government grant of USD 500 million for building transmission lines and upgrading various road projects. The forthcoming Damauli Substation, with a capacity of 1000 Mega Volt Ampere, will be one of Nepal's largest, alongside the Ratmate Substation, which MCA-Nepal also contracted to TEECL in June.

The new substation will integrate with the Ratmate, Lekhnath, and New Butwal substations, vastly improving the nation's power distribution network. The signing ceremony in Kathmandu was attended by MCA-Nepal Executive Director Khadga Bahadur Bishta, TEECL Director-Commercial Rajiv Agarwal, Nepal's Minister for Energy and Water Resources Dipak Khadka, US Ambassador Dean R Thompson, and TEECL Managing Director Padma Prakash Gupta. Khadka emphasized the substations' crucial role in bolstering Nepal's electricity distribution and supporting its economic growth, a sentiment echoed by MCA-Nepal Board chairperson Dr. Ram Prasad Ghimire.

(With inputs from agencies.)