The Millennium Challenge Corporation (MCC), a U.S. aid program, has announced an additional grant of NPR 6.8 billion. This funding will support projects under the NPR 92 billion MCC agreement, which has been implemented since Bhadra 2080 through a partnership between the U.S. grant and the Nepal government’s cost-sharing arrangement, according to the MCC Board of Directors.
“The MCC Board of Directors has approved an additional $50 million for the Nepal Compact. This decision underscores the shared commitment between MCC and the Government of Nepal to implement Nepal’s development priorities through transformative, high-quality infrastructure projects,” stated an MCC press release.
According to Cameron Alford, Vice President of MCC Compact Operations, the additional funding is expected to strengthen Nepal’s electricity transmission, support long-term economic growth, and ensure the success of the compact.
Under the MCC project, a 400 kV double-circuit transmission line spanning 315 kilometers will be constructed. Substations will be built in Lapsiphedi, Kathmandu, and Ratmate, Nuwakot, with transmission lines passing through Makwanpur, Dhading, Tanahun, Palpa, Chitwan, and Nawalparasi, extending to Maheshpur in India. Upon completion of the transmission line, it will enable the exchange of 3,000 MW of electricity between Nepal and India.
