Millennium Challenge Account Nepal (MCA-Nepal) has completed construction of an 18-kilometre electricity transmission line in nine months, marking the completion of the first major infrastructure project under the MCC Nepal Compact.

The completed section runs from the New Butwal Substation, currently under construction in Sunwal Municipality-13 of Nawalparasi (Bardaghat Susta West), to the Nepal-India border.

The foundation stone for the transmission line was laid on November 26, 2025 (Mangsir 10, 2082 BS) by then Finance Minister Rameshwor Prasad Khanal and then US Ambassador to Nepal Dean R. Thompson.

MCA-Nepal Executive Director Khadga Bahadur Bista said construction was accelerated in response to Nepal’s growing electricity infrastructure needs.

MCA-Nepal had awarded the construction contract to Indian company Transrail Lighting Limited on Bhadra 8, 2081 BS. The contract was valued at $12.38 million and originally provided 21 months for completion.

The project faced a temporary disruption after Donald Trump became US president and the US government began reviewing foreign assistance, resulting in a temporary suspension of some foreign aid.

The newly completed section forms part of the Butwal-Gorakhpur cross-border transmission line. With the completion of the Nepal-side section, the country has completed its portion of the second cross-border electricity transmission line.

Under the MCC grant, a total of 315 kilometres of 400-kV transmission lines are being constructed in Nepal. Contracts have already been awarded for the remaining transmission infrastructure through three additional packages.

The MCC Nepal Compact also includes the construction of a 400-kV electricity substation and various road improvement projects, alongside the transmission infrastructure.