MCA-Nepal signs contract with Indian firm to build 400 kV New Butwal Substation in Nawalparasi

Published On: May 9, 2024 04:47 PM NPT By: Republica | @RepublicaNepal

NAWALPARASI, May 9: The Millennium Challenge Account Nepal (MCA-Nepal) has inked a pivotal contract with Linxon India Pvt Ltd for the construction of the 400 kV New Butwal Substation in Nawalparasi (Bardaghat Susta West) district, Lumbini Province.

The 400 kV Gas Insulated Switchgear (GIS) substation will be constructed within the contract duration of 39 months.

The signing ceremony was attended by dignitaries including Kulman Ghising, Managing Director of Nepal Electricity Authority (NEA), and US Ambassador to Nepal, Dean R Thompson.

Ambassador Thompson reaffirmed the US government's dedication to collaborating with Nepal to meet its energy needs, emphasizing the pivotal role of the 400 kV New Butwal Substation in fostering cross-border energy trade and bolstering economic growth.

He said, “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 the 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 in the final stages of the procurement process to sign the contract for the construction of the remaining two substations as well.”

The New Butwal Substation is part of the Electricity Transmission Project, funded by the US government's Millennium Challenge Corporation (MCC) and the Government of Nepal, aimed at fortifying Nepal's energy infrastructure. Additionally, MCA-Nepal is spearheading the construction of two other substations - one in Ratmate, Nuwakot district, and the other in Damauli, Tanahun district - further bolstering the nation's energy grid.

With the 18km Nepal portion of the New Butwal-Gorakhpur power transmission line set for advancement, Nepal is poised to facilitate timely initiation of cross-border power trade as outlined in the agreement with India.