The Millennium Challenge Account Nepal Development Committee (MCA Nepal) has welcomed the US government's decision to continue the program in Nepal under the Millennium Challenge Corporation (MCC). MCA Nepal is the implementing agency of the MCC project run with US support.

"Millennium Challenge Account Nepal Development Committee (MCA Nepal) has welcomed the decision of the US government to allow the implementation of the MCA Nepal Compact to continue under a special exemption regarding the moratorium imposed on US foreign aid," said a statement issued by MCA Nepal on Wednesday.

MCA Nepal is working closely with MCC to implement compact activities including construction of 297 km electricity transmission line and completion of procurement process related to road maintenance. "MCA Nepal is continuing the work related to the construction of three substations and 18 km cross-border transmission line, which had been started before the review of foreign aid," the statement said. 

Although MCA Nepal issued a statement saying that it has decided to continue the project being run in Nepal under MCC, the American government has not made any decision in this regard since the first week of June (June 4). On June 4, the US Embassy in Nepal issued a notice saying that there was a positive indication that MCC Nepal would continue. 

In February 2025, the US government decided to suspend foreign aid for 90 days. In that decision, a special exemption was given for MCC Nepal Compact as an exception. According to the same exemption, the MCC Nepal Compact has been given the right to continue with its full implementation," the statement of the embassy said, "even when the US is reviewing its entire foreign aid program, it is expected to continue the MCC project that has been conducted in Nepal." 

MCA Nepal has said that the project will continue due to the same statement of the embassy and the recent payment of some amount from MCC. "The management of MCA Nepal has analyzed that the project will continue based on the statement issued by the American Embassy on June 4 and the payments made in the meantime," the source said, "According to this, the project has called for a new procurement notice for road maintenance on Wednesday." "The US government asked for details about the status of the project, the project has given details, based on that, some amount has been paid," he said, "As we were told to suspend the project by email earlier, nothing has been formally sent." During the meeting, the American Embassy official also verbally continued the project  You have come saying

.' In the payment process, there is an arrangement that some funds can be sent directly from the US to the dollar account of the project. Accordingly, the spokesperson Bhandari said that some of the payments have been made.

Earlier last March, MCA Nepal had said that the American government had granted permission to proceed with the project under MCC. "The US government has given permission to proceed with some activities under the MCC Nepal Compact, this permission does not indicate any specific result of the review," said a statement issued by MCA Nepal at that time.

Following the order of US President Donald Trump, the project of Nepal was confused due to the steps taken by MCC. On February 2, MCC sent a letter to the Government of Nepal and informed that the payment would be stopped. But last March, MCC Nepal said that the same postponed project will be restarted. Now the project has been welcomed as the US government's decision to continue. 

MCA Nepal is a program under MCC. According to the agreement between Nepal Government and MCC on August 29, 2074, the project implementation started from August 13, 2080. In the initial agreement, it is mentioned that the US government will bear 500 million dollars and the Nepal government will bear 197 million dollars for the 697 million dollars (about 92 billion) project.

Last December, the US government announced an additional 50 million dollars for the project. Under MCA Nepal, 18 km Butwal-Gorakhpur transmission line, 400 kV new Butwal substation, 400 kV new Damauli substation and 400 kV Ratamate substation are under construction. According to MCA Nepal, the proposal received by calling for 297 km transmission line and 40 km contract from Dhankhola to Lamahi is being evaluated.

MCA Nepal signed an agreement with Transrail Lighting Limited on August 14, 2081 for 12.23 million 60 thousand US dollars to build an 18 km transmission line in Nepal under the Butwal-Gorakhpur international transmission line. According to MCA Nepal, the initial phase of the transmission line is being completed in 21 months.

MCA Nepal says that it has paid 167.9 million 32 thousand 962 rupees to Transrail Lighting Company so far for Butwal-Gorakhpur transmission line. Detailed survey, geotechnical investigation and preliminary work of site construction of new 400 KV capacity Damauli substation under construction in Tanahun. 

An agreement was signed with India's Techno Electric and Engineering Company on July 16, 2081 for the construction of the new Damauli substation. 52 crore 21 lakh 5 thousand 354 rupees have been paid to the company that got the contract.

An agreement was signed on June 1, 2081 with India's Techno Electric and Engineering Company Limited to build a 400 KV Ratamate substation in Nuwakot. The substation was built within 39 months for 50.16 million US dollars. According to MCA Nepal, preparations are being finalized before proceeding to the design and construction of the substation and the company has been paid 6997,732 rupees so far.

An agreement was signed with Linkson India on 27 Baisakh 2081 to construct a new 400 KV Butwal substation at Nawalparasi (Bardghat Susta West). The substation, which aims to be completed within 39 months, was contracted for 35.5 million 10 thousand dollars. MCA Nepal has already paid Rs 47 crore 27 lakh 70 thousand 576 to the company that got the

contract. MCA Nepal had invited bids again on December 12 to construct 297 km of electricity transmission line. The bid had a deadline of February 7, 2081. 9 companies have submitted bids to construct three transmission lines, and the proposal is currently being evaluated. 

The estimated cost of construction of 297 km transmission line is 26.4 million 20 thousand dollars. Tenders have been invited for maintenance of 40 km stretch of road from Dhankhola to Lamhi through Full Depth Reclamation (FDR) technique. 11 bids were received for that. The final selection of the bids received is underway.