MCA- Nepal signs contract to develop 400 kV New Butwal Substation

KATHMANDU: MCA-Nepal has 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.

As per the contract agreement, the deadline for completing the project to construct the Gas Insulated Switchgear (GIS) substation is 39 months.

Nepal Electricity Authority (NEA) Managing Director Kulman Ghishing, US Ambassador to Nepal, Dean R Thompson, local authorities, and people’s representatives were present at the agreement signing ceremony.

Addressing the ceremony, the ambassador said the US government is ready to cooperate with the government of Nepal to ensure that the Millennium Challenge Corporation (MCC) Pact was in the interests of Nepal to address its energy needs, the MCA Nepal said.

Speaking at the event, the ambassador stated, “The US Government is committed to working with the Government of Nepal to ensure that the compact delivers on Nepal’s energy needs. The 400 kV New Butwal Substation will improve Nepal’s transmission capacity contributing to reliable and affordable electricity for household consumption, expanded commercial and industrial enterprises, and cross-border electricity trading.”

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, stating “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 US 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, the MCA Nepal said.