MCA-Nepal begins road upgrading works

Kathmandu, Apr. 30

Millennium Challenge Account Nepal (MCA-Nepal) begun the works for upgrading the 40km Dhan Khola–Lamahi section of the East-West Highway on Wednesday.

It informed in a statement that the road upgrading and maintenance works will, for the first time in Nepal, apply Full Depth Reclamation and Superpave as modern construction methods that offer important gains in quality, durability, and sustainability.

"By creating a stronger and long-lasting road surface, reusing existing asphalt materials, and reducing environmental impacts, these approaches will help deliver a more reliable and cost-effective investment in the long term," read the statement.

The project will also widen the road to 12 meters, with a 7-meter carriageway and 2.5-meter shoulders on both sides.

Speaking at the project launch event, Chief Minister of Lumbini Province Chet Narayan Acharya appreciated the use of modern technologies like FDR and Superpave, which will ensure better quality and longer-lasting roads.

“This is a major step forward for our province and the people who rely on this highway every day. The upgrading of this road section will not only make travel safer and more reliable, but also open up new opportunities for local businesspeople, farmers, and entrepreneurs,” he said.

Similarly, Scott Urbon, the Charge d'Affaires a.i. at the U.S. embassy, said that the launch of the project marks an important milestone in the partnership between the United States and Nepal.

"Through the MCC Nepal Compact, we are investing in high-quality, durable infrastructure that will lower transportation costs, improve safety, and connect communities to markets and opportunities. This project reflects our trust in Nepal’s future and our joint dedication to sustainable economic growth,” he said.

The Road Maintenance Project is a key component of the MCC Nepal Compact, the project supported with the Millennium Challenge Corporation (MCC), aimed at lowering transportation costs and improving road conditions across Nepal.

Likewise, speaking at the event, Sushil Babu Dhakal, Joint Secretary at the Ministry of Physical Infrastructure and Transportation and MCA-Nepal Board Member, said that MCA-Nepal’s investments are designed to complement the government’s plans and programmes.

"This collaboration reflects our shared commitment to building resilient infrastructure and expanding economic opportunities for our communities," he said.

MCC Deputy Resident Country Director Sanjay Poudyal said that this milestone reflects MCC’s commitment to supporting Nepal in building resilient, cost-effective infrastructure using advanced technologies that ensure long-term performance.

Similarly, MCA-Nepal Executive Director Khadga Bahadur Bisht expressed MCA-Nepal's commitment to delivering this project efficiently, transparently, and to the highest quality standards.

Nepal has signed a five-year project worth USD 747 million (including US$197 from the Government of Nepal) to construct about 315-km 400kV Nepal-India cross-border transmission line and three substations, an upgrade road with technology transfer.

The project was launched in August 2023 with a fund of US$ 697 while in November 2025, the USA announced an additional US$ 50 million in grant for the same project.

 

Published in The Rising Nepal daily on 1 May 2026.