Two significant agreements launch Nepal's transmission projects, enhancing energy links and reaffirming U.S.-Nepal partnership for progress.

The Millennium Challenge Corporation (MCC) Nepal Compact has officially recommenced its operations, and the Millennium Challenge Account-Nepal (MCA-Nepal) signed two significant contracts to move the compact's Electricity Transmission Project forward on Thursday.

The two contracts will provide the installation of transmission stretches connecting Ratamate-New Damauli and New Damauli-New Butwal. Funded jointly by the governments of Nepal and the United States, both projects will provide a cost estimate of US $154.5 million for the design, installation, testing, and commissioning of 180 kilometers of high-voltage transmission lines. In remarks made during the program, MCC’s Acting Deputy Vice President John Wingle stated that the contracts reaffirm the United States not only commitment to mutual priorities, but to the business development and smart city objectives of Nepal.

Chargé d’Affaires of the US Embassy in Nepal, Jason Meeks, aptly stated that this is not just a construction contract, but rather, it is a tangible demonstration of the United States’ long-standing commitment to the growth and prosperity of Nepal. "We, through a partnership are creating more than just power lines and economic infrastructure; we are also supporting the long-term growth of Nepal. This MCC compact is a cornerstone of our partnership with Nepal, and we are proud to move forward together for the benefit of all citizens of Nepal." After uncertainty ensued after the projects were put on hold following an executive order issued by U.S. President Donald Trump on January 20, 2025, this development has now brought hope for the construction of defined infrastructure. The U.S. government has informed the government of Nepal through a letter sent to the Ministry of Finance on July 24, that the projects will resume.

The MCC Nepal Compact is a $697 million investment in the long-term economic growth of Nepal funded by the United States that will help laid the groundwork for more private sector investment. The compact has been designed to build connectivity and create economic growth through its electricity transmission and road maintenance programs by enhancing critical infrastructure, facilitating cross-border energy trade, and improving transportation throughout Nepal.