Landmark Progress: MCA-Nepal Breaks Ground on Massive Substation and Power Line Project.
In a massive step forward for Nepal's energy sector, construction has officially commenced on two of the country's largest high-voltage substations and a major slice of a cross-country power network. Under the Millennium Challenge Corporation (MCC) Nepal Compact, the Millennium Challenge Account Nepal (MCA-Nepal) formally broke ground on the Ratmate Substation, the New Damauli Substation, and a 297-kilometer power transmission line.
This ambitious development is part of the larger Electricity Transmission Project, jointly financed through a $550 million grant from the United States government and a $197 million investment from the Government of Nepal. Designed to ease severe domestic transmission bottlenecks, the project aims to stabilize the national grid, secure reliable power for local businesses and homes, and set up the infrastructure required for high-capacity regional energy trade.
High-Voltage Infrastructure on the Fast Track
The newly launched construction footprint covers critical energy corridors across the country:
Substation Hubs: India’s Techno Electric and Engineering Company Ltd. has been tasked with building the cutting-edge 400kV substations at Ratmate (Nuwakot) and New Damauli (Tanahun).
The Transmission Network: The 297-kilometer transmission line is being tackled by multiple international joint ventures. The 117-kilometer stretch connecting Lapsiphedi, Ratmate, and New Hetauda is being constructed by the Ashish–Bozlar JV, while the Angelique–Skipper JV and Waiba–Salasar JV handle the remaining segments connecting Ratmate, New Damauli, and New Butwal.
Once fully operational, these high-capacity lines and substations will serve as the backbone of Nepal's modern electricity infrastructure, helping the nation unlock its immense hydropower potential and seamlessly transport clean energy to domestic consumers and neighboring markets.
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