MCA-Nepal Signs Transmission Line Contracts Under MCC Compact

kathmandu -Millennium Challenge Account (MCA) Nepal has signed two major contracts to advance the electricity transmission project under the Nepal Compact, a joint investment between the governments of Nepal and the United States.

MCA-Nepal awarded the Ratamate–New Damauli transmission line construction contract to Angelic Skipper Joint Venture and the New Damauli–New Butwal transmission line construction contract to Waiba–Salasar Joint Venture. The projects will involve the design, installation, testing, and operation of 180 km of 400 kV transmission lines.

The agreements were signed in the presence of officials from Nepal’s Ministry of Finance, Nepal Electricity Authority, the acting vice president of the MCC, the MCC Resident Country Director’s office, and the US Embassy in Nepal. MCA-Nepal Executive Director Khadga Bahadur Bista signed on behalf of MCA-Nepal, alongside representatives from the two companies.

The MCC Nepal Compact includes projects to strengthen electricity transmission and road maintenance, boost cross-border energy trade, and improve Nepal’s transport network connectivity.

Following a recent review of US foreign assistance, the MCC Nepal Compact was reactivated with renewed commitment from both governments.

MCC Deputy VP Visits Nepal as US Aid Resumes

KATHMANDU – John Wingle, Deputy Vice President of the Millennium Challenge Corporation (MCC) overseeing operations in Europe, Asia, the Pacific, and Latin America, arrived in Kathmandu on Monday, marking the first high-level MCC visit since the US resumed aid halted under the Trump administration.

During his stay, Wingle will meet senior Nepali officials, including Deputy Prime Minister and Finance Minister Bishnu Poudel, and attend the signing of contracts for two transmission line projects jointly funded by Nepal and MCC. These include the $77.48 million Ratmate–New Damauli line and the $77.03 million New Damauli–New Butwal line, part of the 297 km MCC Nepal Compact electricity project.

The Trump administration had paused MCC operations in early 2025 during a foreign aid review. In July, the US decided to continue the MCC Nepal Compact, giving Nepal three years to complete the projects or return unspent funds.

The MCC board will meet on August 21 to clarify the agency’s future. In Nepal, the $697 million MCC Compact—ratified in 2022—also includes road upgrades and construction of three new substations. Land acquisition and tree clearance remain key challenges to meeting the tight deadline.

A black flag to US Assistant Secretary of State Donald Lu

Biplava-led CPN has shown a black flag to American Assistant Secretary of State Donald Lu, who arrived in Kathmandu today for a three-day visit to Nepal.

Biplav cadres showed a black flag to Lu and his team at Gaushala. Demanding the cancellation of MCC and SPP, they showed a black flag to Foreign Minister Donald Lu. The police have arrested the cadres who showed the black flag to Foreign Minister Lu.

It is said that the arrested are Prakash Shahi, President of All Revolutionaries, General Secretary Lalit BK, Secretariat Member Tara Sanjel, Central Members Prem Sijapati, Lalit Bam, Ramesh Rawat and Bhaktapur Coordinator Ashok Mahatara.

US Assistant Secretary of State Donald Lu arrived in Nepal

US Assistant Secretary of State for South and Central Asian Affairs Donald Lu has arrived in Nepal.

Lu, who arrived in Kathmandu today for a three-day visit to Nepal, is scheduled to meet with Prime Minister Sher Bahadur Deuba and Foreign Minister Narayan Khadka on Friday. According to the US embassy in Nepal, there is a program to present an award for corporate excellence to Poorna, an American manufacturing company based in Nepal.

Lu is believed to have played an important role in getting the MCC approved by the Nepalese parliament. At a time when the Nepal government has decided not to proceed with the disputed US State Partnership Program (SPP), Lu’s visit to Nepal has been taken very seriously in the Nepali political circle.

US Assistant Secretary of State,Donald Lu to Visit Nepal

A few weeks after Nepal’s rejection of the State Partnership Program (SPP), US Assistant Secretary of State for South and Central Asian Affairs, Donald Lu will be in Nepal on Thursday.

US Assistant Secretary of State for South and Central Asian Affairs, Donald Lu will be arriving for two days visit to Nepal. He is scheduled to meet Prime Minister Sher Bahadur Deuba and Foreign Minister Narayan Khadka during his visit. Yet, no other detailed information has been disclosed about his visit to Nepal.

Previously, it was said that he played an important role to ratify the MCC agreement from the parliament. He was even highly criticized after his separate telephone conversations with Nepalese leaders to ratify the MCC agreement by February 28 and a threat saying, ”Washington would review its relationship with Nepal and understand that China is behind Nepal’s failure to ratify the compact. This incident was later disclosed by Maoist leader Prachanda.

Why the government’s decision about not participating in SPP has not yet been correspondence to the US?

The International Relations Committee of the House of Representatives has demanded a reason for not sending the decision not to participate in the State Partnership Program (SPP) to the US.

The government had decided not to participate in the SPP and said that it would write to the US through the Ministry of Foreign Affairs. Accordingly, the Ministry of Home Affairs has sent the decision of the Council of Ministers to the Ministry of Foreign Affairs. But the Ministry of Foreign Affairs has not yet sent a letter to the US.

The meeting of the International Relations Committee held on Wednesday to discuss the issue questioned,” why the government’s decision not to participate in the SPP was not sent to the US?”

Chief of the committee, Pavitra Niraula Kharel informed that the meeting decided to write a letter to the Ministry of Foreign Affairs and Defense demanding the reason for not writing to the US. The committee has also demanded all the documents shared about the SPP from the Ministry of Defence.