Contract signed to build 400 kV substation in Damauli under MCA Compact

Kathmandu, July 31

MCA-Nepal has signed the final substation contract with Techno Electric and Engineering Company Ltd. (TEECL), India to construct a 400 kV substation with US$ 38.89 million investment in Damauli, Tanahun district.

With this, MCA-Nepal has completed the award of contracts for the construction of all three 400 kV substations as part of implementing the Millennium Challenge Corporation (MCC) Nepal Compact.

Once completed, the New Damauli Substation will have a capacity of 1000 Mega Volt Ampere, making it one of the largest substations in the country along with the Ratmate Substation for which the MCA-Nepal signed a contract with the same company in June 2024.

The New Damauli Substation will serve as a critical point of connection for power flow with the Ratmate, Lekhnath and New Butwal Substation, the MCA-Nepal informed in a statement on Tuesday. 

Khadga Bahadur Bisht, Executive Director of the MCA-Nepal, and Rajiv Agarwal, Director- Commercial at TEECL, India signed the contract in the presence of Minister for Energy, Water Resources and Irrigation, Deepak Khadka, and U.S. Ambassador to Nepal, Dean R. Thompson.

Addressing the event, Minister Khadka expressed his belief that the substations would significantly contribute in strengthening the electricity distribution system in Nepal to pave the way for economic prosperity. He also urged all concerned stakeholders to strengthen efforts for the timely completion of the project.

Dr. Ram Prasad Ghimire, Finance Secretary and Chairman of the MCA-Nepal Board, said that the progress was a good indication of MCA-Nepal’s ongoing efforts to implement the MCC Nepal Compact.

According to him, the three substations are essential to Nepal’s growing energy sector and will help ensure a reliable power sector to enhance industrial and commercial activities for the economic growth in Nepal. 

Likewise, Ambassador Thompson stated that the MCC Nepal Compact was going to be an important part of the shared success story, working with Nepal to power Nepali homes, power the Nepali economy, create jobs, and reduce poverty through inclusive and sustainable economic growth.

Similarly, Bisht said, “It is indeed a remarkable milestone to sign all three substation contracts while approaching the one-year anniversary of the launch of the Compact.”

Along with the three substations, the MCC Nepal Compact will fund the construction of up to 315 km of transmission line from Lapsiphedi, Kathmandu to the Nepal-India border in Nawalparasi (Bardaghat Susta West) under the Electricity Transmission Project. The bids for the 18 km cross-border transmission line have been received for evaluation. MCA-Nepal aims to award the contract in August.

Likewise, preparations are on track to ensure the bids for the remaining 297 km of transmission lines are relaunched at the earliest possible this year. And, on the Roads Maintenance Project, MCA-Nepal is preparing to launch the Full Depth Reclamation procurement in August.

Published in The Rising Nepal daily on 1 August 2024.