The Millennium Challenge Account Nepal (MCA-Nepal) has signed two contracts worth $23.66 million for road maintenance under the Millennium Challenge Corporation (MCC) Nepal Compact.
“MCA-Nepal signed today a USD 20 million contract with Sharma – Kumar Joint Venture for the Road Upgrading Works using Full-Depth Reclamation & Superpave Technology on the Dhankhola to Lamahi section of the East-West Highway, as part of implementing the Road Maintenance Project under the MCC Nepal Compact,” MCA-Nepal said in a statement issued on Monday, December 22. “Additionally, MCA-Nepal recently signed a supporting USD 3.66 million contract with Intercontinental Consultants and Technocrats Pvt. Ltd. (ICT) for Consulting Services for Supervision of upgrading works of this road section and Design and Construction Supervision for Periodic Maintenance of the Narayanghat to Mugling Road Section.”
Khadga Bahadur Bisht, Executive Director at MCA-Nepal, signed and exchanged the contract for the Dhan Khola - Lamahi Road works with Saurav Sharma, the authorized representative of Sharma – Kumar Joint Venture, in the presence of the US Ambassador to Nepal Dean Thompson, Joint Secretary at the Ministry of Finance Dr Dhani Ram Sharma, Joint Secretary at the Ministry of Physical Infrastructure and Transport Sushil Babu Dhakal, the Director General at the Department of Roads Dr Bijaya Jaishi, MCA-Nepal Board Members, MCC Nepal Acting Country Director Sanjay Poudyal and MCC and MCA-Nepal officials, the statement added.
The project includes the construction of a 7-meter carriage way and 2.5-meter shoulder on both sides of the road, making it 12 meter wide using Full-Depth Reclamation & Superpave technology for the upgradation of the 40km Dhan Khola to Lamahi section of the East-West Highway and periodic maintenance of the Narayanghat to Mugling Road Section.
The upgrading and maintenance works will be conducted with new technologies – Full Depth Reclamation and Superior Performing Asphalt Pavement (Superpave) – for the first time in Nepal.
Addressing the event, Ambassador Thompson said the projects represented much more than individual contracts. “Together, they are another milestone reflecting the strength of the U.S-Nepal partnership, the momentum of the Millennium Challenge Compact, and a shared commitment at all levels of government to delivering tangible results for the people of Nepal and American businesses working in Nepal,” he added.
Joint Secretary Sharma expressed confidence that the latest technologies going to be used in Nepal for the first time will open the road to sustainable, effective and cost-effective road maintenance, and MCA-Nepal would complete the project within the timeline.
Similarly, Joint Secretary Dhakal said, “The progress reflects MCA-Nepal’s continued efforts to implement the MCC Nepal Compact by introducing new technologies that improve the quality of Nepal’s road system.”
MCC Nepal Acting Country Director Sanjay Poudyal added the project would contribute meaningfully to improving Nepal's road reliability and serve as a practical model that Nepal can replicate more broadly across its road network.
MCA-Nepal Executive Director Bisht added that the activities under the contracts would help in lowering trade and vehicle operation costs, increase road safety, decrease travel time, and improve travel quality.
MCA-Nepal is the Government of Nepal entity established to implement the MCC Nepal Compact, which represents a total $747 million investment — $550 million in US grant funding and $197 million from the Government of Nepal — to expand Nepal’s electricity transmission network, reduce transport costs, and create new opportunities for private sector growth.
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