KATHMANDU, NEPAL — The Millennium Challenge Account Nepal (MCA-Nepal) officially announced on Tuesday the signing of two landmark contracts totaling US$23.66 million, aimed at enhancing road maintenance under the Millennium Challenge Corporation (MCC) Nepal Compact. These agreements mark a critical juncture in the modernization of Nepal’s transport network, serving as a strategic catalyst for the nation’s long-term economic expansion and infrastructure resilience.
The primary component of this investment is a US$20 million contract awarded to the Sharma–Kumar Joint Venture for the extensive rehabilitation of the Dhankhola–Lamahi section of the East-West Highway. Situated in the Dang District of Lumbini Province, this project will introduce cutting-edge engineering standards to the region. Specifically, the rehabilitation will utilize Full-Depth Reclamation (FDR)—a sustainable method that recycles existing road materials—and Superpave technology, a high-performance asphalt grading system designed to withstand heavy traffic loads and Nepal’s diverse climatic conditions.
Complementing the construction phase, a second contract valued at US$3.66 million was signed with Intercontinental Consultants and Technocrats Pvt. Ltd. (ICT). This agreement mandates the firm to provide rigorous technical supervision for the ongoing rehabilitation works. Furthermore, the contract includes provisions for the periodic maintenance of the Narayanghat–Mugling road section, which remains one of Nepal’s most vital arteries for domestic and international trade.
The formal signing ceremony brought together high-ranking officials from the Government of Nepal and the United States, including U.S. Ambassador Dean Thompson, MCA-Nepal Executive Director Khadga Bisht, and MCC Deputy Country Director for Nepal Sanjay Poudyal. During the event, Ambassador Thompson lauded the progress of the Compact, noting that the project represents far more than a simple financial injection. He emphasized that the initiative reflects the enduring strength of the U.S.–Nepal partnership and a mutual commitment to delivering timely, tangible results that benefit both the Nepali populace and the broader business community.
