Contract signed for construction of 400kV Butwal substation under MCC project

By A Staff Reporter,Kathmandu, May 10: A milestone has been made in the implementation of Millennium Challenge Corporation (MCC) compacts by granting a contract to construct 400 kV New Butwal Substation being built under the MCC project. 

Millennium Challenge Account Nepal (MCA-Nepal) has awarded and signed a contract with Linxon India Pvt. Ltd. for the construction of the 400 kV New Butwal Substation in Nawalparasi (Bardaghat Susta West) district in Lumbini Province on Thursday.

It is the first MCC project whose construction contract has been signed almost 27 months after the government of Nepal endorsed the project from the parliament.

The 400 kV Gas Insulated Switchgear (GIS) substation will be constructed within the contract duration of 39 months, according to MCA-Nepal.

Managing Director for Nepal Electricity Authority (NEA) Kul Man Ghising, U.S. Ambassador to Nepal Dean R. Thompson, local authorities and elected representatives were also present at the signing ceremony in Bhumahi, Nawalparasi (Bardaghat Susta West) Thursday.

While congratulating all stakeholders for the milestone, Ambassador Thompson said that the 400 kV New Butwal Substation would improve Nepal’s transmission capacity contributing to reliable and affordable electricity for household consumption, expanded commercial and industrial enterprises and cross-border electricity trading.

“The U.S. Government is committed to working with the Government of Nepal to ensure that the compact delivers on Nepal’s energy needs,” he said.

NEA Managing Director Ghising said, “The 400 kV substation has been a priority for NEA and will supplement the existing 220 kV substation to significantly increase cross-border energy trade in the region.”

During the event, MCA-Nepal Executive Director Khadga Bahadur Bisht highlighted the overall progress being made in the implementation of the MCC Nepal Compact.

He said, “MCA-Nepal is expediting all works for the construction of the transmission lines and substations under the Electricity Transmission Project. We are at the final stages of the procurement process to sign the contract for the construction of the remaining two substations as well.”

Along with this substation, MCA-Nepal is constructing two other substations in Ratmate, Nuwakot district and Damauli, Tanahun district under the Electricity Transmission Project funded by the U.S. Government’s Millennium Challenge Corporation (MCC) and the Government of Nepal. 

The contractors for the remaining two substations are being selected.

The MCA-Nepal Board, chaired by the Secretary at the Ministry of Finance, decided in its March board meeting 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.