After issuing a global tender for the construction of transmission lines in November 2022, the Millennium Challenge Accounts, Nepal (MCA-Nepal), the special purpose vehicle (SPV) formed to implement the MCC Nepal Compact, has also issued a global tender for constructing sub-stations. A year after the parliamentary ratification, the MCC Nepal Compact has gained momentum with the MCA-Nepal expediting works related to transmission lines and substations construction. As the Entry into Force of the compact program has been scheduled for August this year, the SPV has expedited these works. On March 24, MCA Nepal invited global bids for the construction of three substations of 400 KV capacity under the MCC project. Earlier, on 28 November 2022, the SPV called for global tenders for the construction of four transmission lines.

The MCC implementing agency has called tenders for three 400 kV substations to be constructed at Ratmate, New Damauli, and New Butwal. It has invited tenders to build on design, supply, delivery, installation, testing, and commissioning model.

As per the tender notice, firms interested in constructing the substation are required to submit bid security of  $425,000 for the first lot (Ratmate Substation), and $260,000 for the second lot (New Damauli Substation), and $270,000 for the third lot (New Butwal Substation). Meanwhile, MCA Nepal has extended the deadline for the tender called for the construction of the transmission lines. Earlier, it was said that the bids should be submitted by March 27. Now, the deadline for bid submission has been extended to April 17. MCA Nepal is constructing four transmission lines of 400 KV double circuit capacity and invited tenders in three packages. Under the first package, Lapsiphedi-Ratmate-New Hetauda (117 km) will be built while Ratmate-New Damauli (90 km) will be constructed under the second package. Under the third package, New Damauli-New Butwal (108 km) will be constructed. The 315 km long transmission line will have 856 towers. Currently, the work of purchasing the land required for this is underway. The construction of the project under the MCC is bound to be completed within five years of its commencement, i.e. within 2028 August. With both sides agreeing to start entry into force of the agreement in August this year, the MCA Nepal is facing a race against time to complete the preparatory works. Following the entry into force, all implementation activities must be completed within five years, as there are no provisions for time extension or cost increase. Otherwise, funds allocated for Nepal will be returned to the US.