KATHMANDU, June 15: MCA-Nepal has awarded a contract to Techno Electric and Engineering Company Ltd, India, to construct a 400 kV Substation at Ratmate in Belkotgadhi Municipality-7, Nuwakot district, as part of implementing the Millennium Challenge Corporation (MCC) Nepal Compact.

The 400 kV Gas Insulated Switchgear (GIS) substation will be completed within 39 months as per the contract.

Once finished, the Ratmate Substation will boast a capacity of 1000 Mega Volt Ampere, making it one of Nepal's largest substations, according to a statement issued by MCA-Nepal.

The new US$ 51.6 million Ratmate Substation will serve as a crucial link in power transmission between the Lapsiphedi and New Hetauda Substations.

Khadga Bahadur Bisht, executive director at MCA-Nepal, and Rajiv Agarwal, Director-Commercial at Techno Electric and Engineering Company Ltd, signed and exchanged the contract in the presence of officials from MCC and MCA-Nepal.

With the signing of this contract, MCA-Nepal has now finalized two of the three planned substation construction contracts under the MCC Nepal Compact.

NEA Managing Director Kulman Ghising congratulated the MCA-Nepal team and remarked, "The 400 kV Ratmate Substation, envisioned in Nepal's Transmission System Development Plan (TSDPN), is a critical element of the national power transmission system and represents another milestone in the MCC Nepal Compact's contributions to Nepal's energy sector."

Diane L Francisco, resident country director of the Millennium Challenge Corporation (MCC), also extended congratulations, stating, "The signing of contract for the Ratmate Substation, the second of the three substations, marks a significant step forward as the MCC Nepal Compact gains momentum in implementation."

"In the coming years, we are confident that the MCC Nepal Compact's progress will make vital contributions to Nepal's expanding energy sector, meeting evolving needs, leveraging Nepal's vast potential, and fostering prosperity for the Nepali people," Francisco added.

Khadga Bahadur Bisht, executive director of MCA-Nepal, affirmed, "MCA-Nepal is accelerating all efforts for the construction of substations and transmission lines under the Electricity Transmission Project funded by the US Government's Millennium Challenge Corporation (MCC) and the Government of Nepal."

"The contract process for the third substation in Damauli is in progress, and bids for the 18 km cross-border line are currently under evaluation. We are also in the final stages of procurement to invite bids for the remaining segment of the transmission line," Bisht noted.

The 400kV Ratmate Substation will have an evacuation capacity of approximately 3,200 MW from hydropower projects and substations.

Reliable power supply at various voltage levels from the substation will support Nepal's industrial and commercial activities.