MCC project hits key milestones in Nepal
The MCC project in Nepal which plunged into controversy from 2018 to 2022 has made some significant progress since its entry into force on August 30, 2023. According to Khadga Bahadur Bisht, Executive Director at MCA-Nepal, their office has completed the procurement of some major contracts and made significant progress in preparing the sites for contractors’ access.
This included ensuring work on land acquisition and forest clearance is achieved in adherence with the regulations of the Government of Nepal, MCC Environment Guidelines and International Finance Corporation (IFC) Performance Standard 5. I would like to highlight specific achievements and updates starting with the Electricity Transmission Project, he said.
MCA-Nepal awarded and signed contracts worth around $126m for the construction of three 400 kV GIS substations at three locations from May-July 2024 in Nawalparasi West, Nuwakot and Tanahun. Two substations, the New Damauli Substation and the Ratmate Substation will each have a capacity of 1,000 MVA, making them the largest substations in the country, he informed.
Similarly, a two-year $1m Livelihood Restoration Program for 270 project-affected people in Ratmate Substation concluded on 30 May 2024 to pave the way for new businesses and prosperity. Project-affected people benefited from the program through training in high-value agriculture, a wide array of vocational skills, and job skills such as weaving, advanced computer training and financial literacy. MCA-Nepal had earlier acquired around 400 ropanis of land for the substation.
The contractor for the 18-km cross-border transmission line segment has been selected and will be awarded within Aug 2024. Consultant Supervision Engineers are on board for supervision of construction works of transmission lines and substations and currently working to help MCA-Nepal re-launch procurement for the 297-km transmission line later this year.
Looking ahead, our goals for the second year are to sign the contract for the remaining 297 km of transmission line and move ahead in the construction of transmission lines and substations both, fix land rates in all affected districts and distribute compensation, and to move ahead with the road maintenance works with the selection of a contractor, he said, we anticipate meeting these goals but we know that historically, in Nepal, working with communities that will be impacted by the project’s land acquisition can take time. We have been successfully navigating this and setting the bar in terms of handling this process fairly and plan to continue that going forward.
