MCC Nepal Compact Programme for Infrastructure Strengthening.

Nepal's transformation from a country reliant on electricity imports to one that exports power marks a significant milestone in its energy sector. This shift, driven by both state and private sector investments in generation projects, is aimed at fulfilling Nepal's long-standing vision of exporting surplus electricity. Currently, Nepal exports green energy to India, with future plans to extend this to Bangladesh. This development not only helps meet domestic demand but also provides a crucial source of export revenue for Nepal, supporting its economic growth and sustainability goals.

To support this transition, Nepal must ensure that its transmission infrastructure keeps pace with the growing generation capacity. The Transmission Development Master Plan, which dates back to 1995 and includes updates such as the 2017 plan, highlights the need for cross-border connections with neighboring countries like China and India. Despite significant investments in power generation, inadequate transmission infrastructure has hindered the effective delivery of electricity. The timely construction of transmission lines is essential to avoid jeopardizing the investments in power generation and to boost the country’s economy.

The Millennium Challenge Account Nepal Development Board (MCA-Nepal) is playing a pivotal role in addressing this challenge by constructing a major segment of the transmission infrastructure. The MCC Nepal Compact Fund, a USD 630 million initiative co-funded by the Millennium Challenge Corporation (MCC) and the Government of Nepal, supports the Electricity Transmission Project (ETP) and the Road Maintenance Project (RMP). The ETP involves building a 315 km 400 kV transmission line and three new substations, which will enhance the capacity to transport over 3,000 MW of generated power. This project is critical for improving the reliability and quality of electricity supply and facilitating regional power trade.

In addition to the transmission infrastructure, the RMP aims to maintain the quality of key roads, enhancing transportation networks and supporting economic development. The project’s use of climate-smart technologies and sustainable practices, such as Full Depth Reclamation and Super-pave for road maintenance, represents a forward-looking approach to infrastructure development. The preparatory and implementation phases of the MCC Nepal Compact are designed to ensure timely and effective project delivery, adhering to stringent environmental and social safeguards.

Overall, the MCC Nepal Compact is set to be a transformative initiative for Nepal, not only in boosting power evacuation capacity but also in setting a benchmark for infrastructure project management. The project’s successful completion will enhance Nepal’s energy sector, support regional integration, and promote sustainable development practices.

Note: This article is from Nepal Infrastructure Summit 2022 Souvenir, for more information visit our page: https://nepalinfrastructuresummit.com.np/blog/mcc-nepal-compact-programme-for-infrastructure-strengthening