Six months in, the MCA-Nepal project stagnates without progress

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Transmission line project - MCC - MCA

Kathmandu, February 23

Six months of Millennium Challenge Account Nepal (MCA-Nepal), Nepal project implementation (Entry into Force-EIF) with little to no work done.

As of February 2024, the project, which commenced on August 30, 2023, with a five-year completion timeline, has yet to secure a contractor for any of the transmission lines, substations, and road projects. Despite cancelling the contract process four and a half months ago, the MCA has not succeeded in issuing a new tender.

Sources say the MCC project preparation progress is sluggish. There is uncertainty about when the contract for the transmission line and road upgrading project, initiated without selecting a contractor, will be awarded. Furthermore, the MCA has not completed the tender evaluation for the construction of substations on time.

If projects under the MCC are not completed by August 2028, the unspent US grant will be withdrawn, even if no work has commenced.

Ministry of Finance officials say that since MCA cannot spend the allocated development budget, the challenge to complete the project on time is increasing and the capital expenditure of the Ministry of Finance is also showing weakness.

“Although there is no construction work, the running costs of the MCC project are high,” said an official of the Ministry of Finance.

Both the board of directors and the management of MCA have not responsibly presented themselves to complete the procedures and started work in the field.

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