MCA-Nepal signs contracts for road maintenance

By A Staff Reporter,Kathmandu, Dec. 23: MCA-Nepal has announced the signing of two major contracts worth a total of USD 23.66 million to advance road maintenance under the Millennium Challenge Corporation (MCC) Nepal Compact, marking a significant step toward Nepal’s long-term economic growth and development.

These contracts jointly represent a major step forward for the Compact’s goal to advance Nepal’s long-term economic growth and development.

MCA-Nepal on Monday signed a USD 20 million contract with Sharma – Kumar Joint Venture for the Road Upgrading Works using Full-Depth Reclamation & Superpave Technology on the Dhankhola to Lamahi section of the East-West Highway, as part of implementing the Road Maintenance Project under the MCC Nepal Compact. 

Additionally, MCA-Nepal recently signed a supporting USD 3.66 million contract with Intercontinental Consultants and Technocrats Pvt. Ltd. (ICT) for Consulting Services for Supervision of upgrading works of this road section and Design and Construction Supervision for Periodic Maintenance of the Narayanghat to Mugling Road Section.

Khadga Bahadur Bisht, Executive Director at MCA-Nepal, signed and exchanged the contract for the Dhankhola-Lamahi Road works with Saurav Sharma, the authorised representative of Sharma–Kumar Joint Venture on Monday in the presence of the U.S. Ambassador to Nepal Dean Thompson and Joint Secretary at the Ministry of Finance Dr. Dhani Ram Sharma.

Similarly, Joint Secretary at the Ministry of Physical Infrastructure and Transport Sushil Babu Dhakal, Director General at the Department of Roads Bijaya Jaishi, MCA-Nepal Board Members, MCC Nepal Acting Country Director Sanjay Poudyal and MCC and MCA-Nepal officials were present at the signing ceremony. 

The project includes the construction of a 7-metre carriage way and 2.5-metre shoulder on both sides of the road, making it 12 metre wide using Full-Depth Reclamation & Superpave technology for the upgradation of the 40km Dhankhola to Lamahi section of the East-West Highway and periodic maintenance of the Narayanghat to Mugling Road Section. 

The upgrading and maintenance works will be conducted with new technologies --- Full Depth Reclamation and Superior Performing Asphalt Pavement (Superpave), for the first time in Nepal. 

Addressing the event, the U.S. Ambassador to Nepal Dean Thompson said, “The upgrading of the Dhankhola - Lamahi Road project and the Narayanghat - Mungling Road Maintenance project represents much more than individual contracts. Together, they are another milestone reflecting the strength of the U.S.-Nepal partnership, the momentum of the Millennium Challenge Compact, and a shared commitment at all levels of government to delivering tangible results for the people of Nepal and American businesses working in Nepal.” 

He added, “As the Compact delivers essential road infrastructure across Nepal, these two contracts will introduce American excellence in road maintenance technology by using Full Depth Reclamation and Superpave."

Joint Secretary at the Ministry of Finance Sharma expressed his confidence that the latest technologies going to be used in Nepal for the first time will open the road to sustainable, effective and cost-effective road maintenance, and MCA-Nepal would complete the project within the timeline. 

Sushil Babu Dhakal, Joint-Secretary at the Ministry of Physical Infrastructure and Transport, said, “The progress reflects MCA-Nepal’s continued efforts to implement the MCC Nepal Compact by introducing new technologies that improve the quality of Nepal’s road system.” 

MCC Nepal Acting Country Director Sanjay Poudyal said that this project will contribute meaningfully to improving Nepal's road reliability and serve as a practical model that Nepal can replicate more broadly across its road network. He said well-built and well-maintained roads are not merely a consequence of economic growth; they are one of its essential drivers.

MCA-Nepal Executive Director Bisht said, “It is indeed a remarkable milestone to sign two contracts to move ahead with the Road Maintenance Project. The activities under the contracts will help in lowering trade and vehicle operation costs, increase road safety, decrease travel time, and improve travel quality. I would like to acknowledge the support of the Government of Nepal and our key stakeholders – the Ministry of Physical Infrastructure and Transport, Department of Roads, the MCA-Nepal Board and MCC for their continued support.”

The Road Maintenance Project is a component of the MCC Nepal Compact, aimed at reducing transportation costs and improving road conditions in Nepal. 

The MCC Nepal Compact represents a total USD 747 million investment—USD 550 million in U.S. grant funding and USD 197 million from the government of Nepal—to expand Nepal’s electricity transmission network, reduce transport costs, and create new opportunities for private sector growth.