Washington, D.C. – The Millennium Challenge Corporation (MCC) has announced an additional NPR 6.8 billion in aid for Nepal. This funding is intended to support the ongoing NPR 92 billion MCC Compact, implemented since September 2023, which is jointly financed by U.S. grants and the Nepalese government.

“The MCC Board of Directors has approved an additional $50 million for Nepal’s Compact. This decision underscores the shared commitment between MCC and the Government of Nepal to prioritize development goals through transformative, high-quality infrastructure projects,” stated an MCC press release.

According to Cameron Alford, Vice President of MCC Compact Operations, the additional funding aims to strengthen Nepal’s electricity transmission infrastructure, foster long-term economic growth, and ensure the Compact’s success.

Under the MCC Compact, a 400kV double-circuit, 315-kilometer-long transmission line will be constructed. This will include substations in Lapsiphedi (Kathmandu) and Ratamate (Nuwakot), with the transmission line passing through Makwanpur, Dhading, Tanahun, Palpa, Chitwan, and Nawalparasi to Maheshpur at the India-Nepal border. Upon completion, this infrastructure will enable the exchange of up to 3,000 MW of electricity between Nepal and India.