A total of $107.757 million has been spent on projects under the US grant-aided Millennium Challenge Corporation (MCC) so far. According to information provided by the Millennium Challenge Account Nepal Development Committee (MCA Nepal), $890 million has been spent under the MCC and $27.666 million from the Government of Nepal.

 The funds have also been used for the projects implemented under the MCC Compact and for the salaries and office operations of MCA Nepal. 

Earlier, in an email sent by MCC on 2 February 2081, the activities of MCC funds related to the projects being implemented under the agreement signed between the Government of Nepal and the said agency on 29 Bhadra 2074 were stopped in accordance with the Executive Order of the US President issued on 20 January 2025 regarding the 90-day moratorium.

On 21 March 2025, MCA Nepal issued a press release stating that the US government had granted permission to proceed with some activities under the MCC Nepal Compact while the review of US foreign assistance was ongoing. On 2 July 2025, it welcomed the decision of the US government to allow the continuation of the implementation of the MCC Nepal Compact under a special exemption in the context of the moratorium on US foreign assistance.

Under MCA Nepal, the 18-kilometer 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, a contract has also been awarded for a 297-km transmission line. The companies that have been awarded the contract have already started work. The contract for the 40-km section from Dhankhola to Lamahi has also been awarded, and preparatory work is underway.

MCA Nepal had signed an agreement with Transrail Lighting Limited on 14 Bhadra 2081 for the construction of an 18-km transmission line in Nepal under the Butwal-Gorakhpur inter-country transmission line for 12.36 million US dollars. According to MCA Nepal, work is being done with the aim of completing the transmission line in 21 months. The design, engineering and survey work of the transmission line have been completed. The information provided by MCA Nepal states that the foundations of 21 of the total 53 towers to be constructed have already been laid.

MCA Nepal says it has paid $1.56 million to Transrail Lighting Company for the Butwal-Gorakhpur transmission line by January 2026. The physical progress of the new 400 kV Damauli substation under construction in Tanahun has reached 16.75 percent. An agreement was signed with India's Techno Electric and Engineering Company on July 16, 2081 for the construction of the new Damauli substation. The company that won the contract has been paid $4.2 million.

An agreement was signed with India's Techno Electric and Engineering Company Limited on July 1, 2081 to construct the 400 kV Ratamate substation in Nuwakot. The agreement was signed for $5.16 million to complete the construction of the substation within 39 months. The substation is also under construction. MCA Nepal says it has paid $5.51 million to the contractor company so far, which has reached 16.56 percent physical progress.

An agreement was signed with Linkson India on 27 Baisakh 2081 to construct the 400 kV New Butwal Substation in Nawalparasi (Bardaghat Susta West). The substation, which was targeted to be completed within 39 months, was signed for $35.51 million. 

MCA Nepal has stated that it has already paid $5.14 million to the company that won the contract. The physical progress of the substation has reached 26 percent.

MCA Nepal has already signed an agreement with Ashish-Bozler Joint Venture to construct a 117 km transmission line from the under-construction Lapsiphedi Substation in Nuwakot to the under-construction Ratmate Substation in Makawanpur district to the new Hetauda Substation in Makawanpur district. The agreement was signed for a total of $76.65 million. MCA Nepal has stated that 60 percent of the detailed engineering survey work has been completed. $7.47 million has been spent till January 2026.

MCA Nepal has signed agreements with Angelic-Skipper Joint Venture to construct the Ratmate-New Damauli transmission line and with Waiba-Salasar Joint Venture to construct the New Damauli-New Butwal transmission line. Under these agreements, which have a combined cost of US$ 1545 million, it is said that 180 kilometers of 400 kV transmission line will be constructed. MCA Nepal said that a detailed engineering survey and geotechnical investigation of the Ratmate-New Damauli transmission line are underway. It has also said that construction work is expected to start from next October. It has also said that $ 7.65 million has been spent for this by January 2026.

Stating that the detailed engineering survey and geotechnical investigation of the New Damauli-New Butwal transmission line project have been completed, MCA Nepal said that other preparatory work is underway. $ 7.5 million has been spent for this. A USD 20 million agreement has been signed with Sharma-Kumar Joint Venture for the maintenance of a 40-kilometer road section from Dhankhola to Lamahi using Full Depth Reclamation (FDR) technology. The work has started on January 25. MCA Nepal has stated that there has been zero physical progress so far as the contracted company is engaged in preparatory work.

According to MCA Nepal, the electricity transmission project, which will cost a total of USD 582 million, is being implemented to increase domestic electricity consumption by improving the availability and reliability of electricity in the national grid, increase investment by providing more reliable electricity, and increase government revenue by exporting saved electricity.