The Millenium Challenge Account, Nepal (MCA Nepal) has awarded a contract for the construction of a new substation in Nawalparasi. Issuing a press statement, MCA Nepal - the implementing agency for MCC projects in the country - said the contract for the construction of the 400kV New Butwal Substation in Nawalparasi has been awarded to Linxon India Pvt Ltd. The project is expected to be completed in 39 months.

The signing ceremony, which took place in Bhumahi, Nawalparasi, was attended by Nepal Electricity Authority (NEA) Executive Director Kulman Ghising and US Ambassador to Nepal Dean R Thompson, among other dignitaries. “The 400kV New Butwal Substation will improve Nepal’s transmission capacity contributing to reliable and affordable electricity for household consumption, expanded commercial and industrial enterprises and cross-border electricity trading,” Thompson said at the event.

Two similar substations will also be built in Nuwakot and Tanahun under the Electricity Transmission Project jointly funded by the Millennium Challenge Corporation (MCC) and the Government of Nepal. The MCA Nepal board, chaired by the secretary of the Ministry of Finance, in its March board meeting, decided to advance the 18 km Nepal portion of the New Butwal-Gorakhpur power transmission line to facilitate timely initiation of cross-border power trade as outlined in the agreement with India.