Information for Potential Contractors and Suppliers

Information about upcoming (i) 300 Km of 400 kV Electricity Transmission Line Works Contract and (ii) Procurement of Plant Design, Supply and Installation, Testing and Commissioning of Lot 1: 400kV Ratmate Substation; Lot 2: 400kV New Butwal Substation; Lot 3: 400kV New Damauli Substation  under the Electricity Transmission Project in Nepal

The Millennium Challenge Corporation (“MCC”) and the Government of Nepal (the “Government” or “GoN”) have entered into a Millennium Challenge Compact for Millennium Challenge Account assistance to help facilitate poverty reduction through economic growth in Nepal (the “Compact”) in the amount of approximately USD 500 million (“MCC Funding”). The Government is acting through the Millennium Challenge Account-Nepal (the “MCA-Nepal”) for the implementation of the projects funded under the Compact and has contributed USD 130 million (“GoN Funding”).

The goal of the Compact is to reduce poverty through economic growth. The Compact program includes two projects: (i) The Electricity Transmission Project (ETP) for the construction of about 300 kilometers of 400 kV electricity transmission lines, three substations, and technical assistance for the power sector; and (ii) The Road Maintenance Project (RMP) to provide technical assistance to improve road maintenance and conduct road maintenance works of around 100 kilometers of the strategic road network identified by MCC and GoN through mutual consultation. The program would include the procurement of contractors and consultants for design, construction and supervision of electricity lines and substations; and road maintenance works, including a variety of technical services, equipment and construction works in different geographic locations within Nepal. The Compact can be accessed at http://mcanp.org/wp-content/uploads/2019/04/Millennium_Challenge_Compact.pdf

Information for Potential Contractors and Suppliers: This notice is to inform potential contractors and suppliers for the above procurements,  that given the current business and  travel disruptions caused by the global COVID-19 pandemic:  (i) MCA-Nepal has decided to postpone the launching of the bidding processes under the Electricity Transmission Project which were scheduled to be published in the first quarter of 2020; (ii) MCA-Nepal will timely notify/publish updated information on dates and modality to   access  the bidding documents as soon as the current disruptions are resolved,  and (iii) MCA-Nepal suggests visiting its website regularly for updated information on its business opportunities and other important notices: https://mcanp.org/.

Electricity Transmission Project Notice

सूचना

नेपाल सरकार अर्थ मन्त्रालय अन्तर्गतको मिलेनियम च्यालेञ्ज एकाउण्ट नेपाल (एमसीए नेपाल) को निर्माणाधीन ४०० के.भी. विद्युत्प्रशारण आयोजना अन्तर्गत नुवाकोट जिल्लाको साविक रातमाटे गाविस वडा नं ६ र ९ (हाल बेलकोटगढी नगरपालिका वडा नं ७) मा ४०० के.भी.सबस्टेशन निर्माणको लागि आवश्यक पर्ने जग्गा प्राप्ति गर्ने सम्बन्धमा जग्गा प्राप्ति ऐन २०३४ को दफा ९ बमोजिम मिति २०७६-०६-१५ मा सूचना प्रकाशित गरिएको र सोहि ऐनको दफा १३ बमोजिम गठन भएको मुआब्जा निर्धारण समितिको मिति २०७६-१०-१५ को निर्णय अनुसार मुआब्जा निर्धारण भई जिल्ला प्रशासन कार्यालय, नुवाकोटको मिति २०७६-१०-२२ मा प्रकाशित मुआव्जा बुझ्न आउने सम्बन्धि सूचना अनुसार कामकाज भइआएकोमा हाल नोवलकोरोना भाइरस विश्वव्यापी महामारीको रुपमा फैलिरहेको र नेपाल समेत उच्च जोखिममा रहेको अवस्थामा उक्त भाइरसको संक्रमण हुन नदिनका लागि नेपाल सरकारले मिति २०७६-१२-११ गतेदेखि देशभरी नै लकडाउन गर्ने निर्णय गरि कार्यान्वयको अवस्थामा रहेको र जिल्ला प्रशासन कार्यालय नुवाकोटबाट समेत मिति २०७६-१२-११ मा निषेधाज्ञा जारी गरिएको परिप्रक्ष्यमा नेपाल सरकारको उक्त निर्णय तथा जिल्ला प्रशासन कार्यालय नुवाकोटबाट जारी गरिएको निषेधाज्ञाको पालना गर्दे यस आयोजनाबाट भैआएको मुआब्जा बितरण सम्बन्धि कामकाज अर्को सुचना प्रकाशित नभएसम्मको लागि हाललाई स्थगित गरिएको व्यहोरा जानकारी गराइन्छ । यसबाट सम्बन्धित जग्गा धनीहरुमा पर्ने असुविधाको लागि यस आयोजना क्षमायाचना गर्दछ ।

मिलेनियम च्यालेञ्ज एकाउण्ट नेपाल
होटल याक एण्ड यति, दरबारमाग

Notice of delay in compensation for land acquisition in Ratmate

Kathmandu, March 24, 2020

Millennium Challenge Account Nepal (MCA-Nepal) has decided to postpone the distribution of compensation for the acquisition of land in Nuwakot owing to the nationwide lock down imposed by the Government of Nepal with an aim to control the Covid-19 pandemic. Publishing a public notice, MCA-Nepal has stated – “Following the decision of the Government of Nepal on imposing the nationwide lock down and the curfew imposed by the District Administration Office of Nuwakot, it is informed to all that the compensation distribution process, being executed by this program, has been postponed until next notice. The program apologizes for the inconvenience caused by this to the concerned landowners.” Considering the gravity of the Covid-19 pandemic, the Government of Nepal has declared a nationwide lock down from March 24, 2020 and the District Administration Office of Nuwakot has imposed a curfew from the same date. Earlier, a notice was published by the District Administration Office, Nuwakot on February 5, 2020 regarding the distribution of compensation against the land to be acquired for the construction site. MCA-Nepal, an independent entity formed under the Ministry of Finance of the Government of Nepal to implement the 400 KV Electricity Transmission line Project, requires about 400 Ropani of land in Belkotgadhi Municipality Ward No. 7 of Nuwakot district for the construction of 400 KV Sub-Station under the project. A notice was published on October 2, 2019 regarding the acquisition of land required as per the Clause No. 9 of Land Acquisition Act, 2034. Compensation rates for the acquired land were determined by a meeting of the Compensation Fixation Committee, conducted on January 29, 2020. Read more about the notice.( PDF)

Land Compensation Rate fixed for Ratmate Sub-station

Nuwakot, January 29, 2020.

A Compensation Fixation Committee meeting held on 29 January 2020 under the Chairmanship of the Chief District Officer of Nuwakot Mr. Drona Pokharel, fixed the compensation rate for land to be acquired for the construction of a sub-station at Ratmate, Ward No. 7, Belkotgadhi Municipality of Nuwakot.

Compensation rates have been fixed in three categories based on natures of lands to be acquired. Lands under category (a) will be provided NRs. 5.2 Million/Ropani, category (b) will get NRs. 3.36 million/Ropani and category (c) will be compensated with NRs. 2.56 million/Ropani.

Mr. Shiva Dhakal, ESP Specialist Land Acquisition MCA-Nepal presenting about the project working area at Ratmate, Nuwakot.

The rates have been based on a report presented by a sub-committee, coordinated by Mr. Badri Nath Gairhe, the Assistant Chief District Officer at Nuwakot district. The rates were fixed based on recommendations on the evaluation of lands to be acquired, crops and plants on the lands, people to be affected.

The project will also be providing NRs. 45 thousand as moving allowance; NRs. 11,800/Ropani as land clearance and land development allowance; NRs. 48 thousand as rental allowance for six months and NRs. 11,100/person as food security allowance to each physically displaced family. Similarly, physically displaced families dependent on agriculture will also receive NRs. 13,500 dependent on brick industries, NRs. 16 thousand dependent on small business, NRs. 60 thousand dependent on poultry farming, NRs. 120 thousand dependent on rice mill and NRs. 150 thousand as transitional allowance.

Apart from them, physically and economically displaced families will be provided with NRs. 18 thousand as transportation allowance per family and chronically-ill patients, senior citizens and people with different abilities will benefit with NRs. 36 thousand as vulnerable allowance (NRs. 3 thousand per month for 12 months).

25 representatives from various government authorities, local government, affected local communities, including MCA-Nepal staff and the Executive Director of MCA-Nepal took part in the meeting.

The meeting was conducted according to Clause 13 of Land Acquisition Act, 1977.

A notice regarding the land to be acquired was published on 5 February 2020 on Gorkhapatra Daily.

Millennium Challenge Account Nepal (MCA-Nepal) is in the preparatory phase to construct the Ratmate Sub-station as a part of its Electricity Transmission Project (ETP), which will build 318 km long 400 kV transmission line in Nepal across 10 districts covering three Provinces.

Press meet for timely parliamentary ratification of the MCC Nepal Compact

On 22 December 2019, MCA-Nepal organized a press meet to appeal the Parliament for timely ratification of the MCC Nepal Compact. The meet coincided with the starting week of the winter session of the House of Representatives. Mr. Khadga B. Bisht, the Executive Director of MCA-Nepal gave an overview of the organization and the status of the Compact.  He highlighted the need for urgent ratification stressing upon the fact that it was Government of Nepal’s decision to send the Compact for Parliamentary ratification after a well-thought legal opinion and thorough consideration by the Ministry of Law, Justice and Parliamentary Affairs.

He also informed the media that all MCC Compacts worldwide are implemented only after a Parliamentary ratification and 17 other countries where the compact is being/ has been implemented have received parliamentary ratification. Parliamentary ratification and site access are the two major remaining conditions that will be required to ensure Nepal can access the funds allocated to implement the program on time. Expressing commitment to complete the program within the five years time frame, Mr. Bisht mentioned, “We are in the final stage of preparatory works required for the implementation of our projects.” Mr. Bisht also delivered a press release in the same event which included updates of the major achievements of MCA-Nepal as highlighted below:

  • On 29 September 2019, the Program Implementation Agreement (PIA), one of the Conditions Precedent to the Compact was signed by the Government of Nepal and the MCC, representing the US Government.

  • On 30 September 2019, a Compensation Fixation Committee (CFC) was formed in Nuwakot under the Chairmanship of the CDO and the process to form similar committees in other nine districts is ongoing.

  • On 15 October 2019, the Governments of Nepal and India agreed to the financing and ownership framework that will govern the implementation of the New Butwal – Gorakhpur cross-border transmission line, which is an integral part of the Nepal compact and a Condition Precedent.

  •  On 18 and 29 – 30 November, two outreach events in Nepal and India were held to inform potential construction and service providing organizations about upcoming procurement opportunities and to ensure that the best contractors from around the world participate in the global bidding for the construction of the projects.

  •  From 24 November – 6 December 2019, public hearings, which are a mandatory requirement in finalizing the environmental impact study of project areas were conducted in 30 municipalities of the 10 districts that will be affected by the Electricity Transmission Project. As a result, these 30 municipalities have provided their recommendation to move ahead.

  • Local level stakeholder consultations have taken place in all 30 municipalities and district level stakeholder consultations are also being organized. Three district level consultations in Nuwakot, Sindhupalchowk and Nawalparasi (Bardaghat-Susta West) have been completed.

  • Similarly, detailed design work, finalization of the transmission line alignment, and tendering as well as planning for the contractor selection process is progressing well and will be completed within the next two months so that these processes are carried out on time to allow for implementation phase to begin on 30 June 2020.

The meet ended after a question and answer session with the media. Around 50 journalists took part in the half day event that was organized in Hotel Royal Singi, Kathmandu.

Municipality level public hearing held in all districts to be affected by ETP

MCA-Nepal organized municipality level public hearings from 24 November – 5 December 2019 in all 30 Municipalities of the ten districts which will be affected by the Electricity Transmission Project (ETP) will be implemented. The purpose was to generate awareness of the importance of MCA-Nepal’s ETP, share the draft Environment Impact Assessment (EIA) report, sensitize communities and local stakeholders on the potential social and environmental impact of the project activities and share mitigation measures adopted to address them.

The EIA was conducted earlier in areas that will be affected, i.e. 98 wards of 30 municipalities. EIAs are carried out to minimize the adverse impacts on ecological, social and the surrounding physical environment. Considering these socio-environmental impacts, several adjustments were made on the alignment route for the transmission towers. The hearing was an opportunity to share how the EIA has adopted various impact mitigation measures, such as compensation based on resettlement cost, compensation for crops, fruits and plants for the transition period.

Public hearings are a mandatory requirement in finalizing the environmental impact study of project areas that will be affected by the Electricity Transmission Project. As a result, many of these municipalities have provided their recommendation to move ahead. A total of 1543 people took part in public hearings out of which about 20% of the participants were women.

Glimpses of the Public Hearing

DateDistrict group 1Hearing Venue District group 2 Hearing Venue District group 3Hearing Venue
11/24/19NuwakotBelkotgadhi- ward no. 7
11/25/19NuwakotTarkeshwor-Taruka GhatTanahunVyas-DCC HallDhading-benighat rorangBishaltaar – Near GP office
11/26/19NuwakotLikhu-GP officeTanahunRishing-GP officeDhadingGajuri-GP office
11/27/19NuwakotPanchakanya- ward 5 officeTanahunGhiring- Gp officeDhadingSiddhalekh-Bunchung Gp office
11/28/19NuwakotShivapuri-Gp officePalpaRampur-Bejad BazaarDhadingGalchhi – Gp office
11/29/19ChitwanIchhyakamana-Gp officePalpaNisdi-GpofficeDhadingThakre-Gp office
12/01/19TanahunAbukhairani-Gp officeNawalparasiBinayeetribeni- ward 5 officeDhadingNilkantha-ward 5 DCC hall
12/02/19TanahunBandipur-Gp officeNawalparasiBardaghat-Municipality officeMakwanpurThaha-Bhakundebesi
12/03/19NawalparasiSunwal-Municipality officeMakwanpurKailash-Gp office
12/04/19KathmanduShankharapur-JarsingpauwaNawalparasiRamgram-Municipality officeMakwanpurHetauda-DCC Hall
12/05/19SindhupalchowkMelamchi-Community Building Ward-2NawalparasiPalhinandan-Municipality officeMakwanpurRaksirang-Gp office

Electricity Outreach Event held successfully in New Delhi

MCA-Nepal organized a two day outreach event from 29 to 30 of November 2019 in New Delhi. The objective of the outreach was to inform potential construction and service providing organizations about upcoming procurement opportunities related to the Electricity Transmission Project (ETP). The upcoming Plant Design, Supply and Installation, Testing and Commissioning of about 300 Kilometers 400 kV D/C Transmission Lines in Nepal; Plant Design, Supply and Installation, Testing and Commissioning of Three (3) 400 kV Substations in Nepal; Power Sector Technical Assistance Activity (Electricity Regulatory Commission and Nepal Electricity Authority); Road Management Technical Assistance (Department of Roads and Roads Board Nepal) and Procurement procedures/methods overview including key timelines.

Ms Shalini Tripathi, Deputy Executive Director- Management for MCA-Nepal gave an insight into MCA-Nepal’s compact. Mr. Luis Villalta, Procurement Agent Manager shared about the procurement process and stressed upon the fairness criteria in the process of selection. The requirements for the project activities were also shared by respective managers in the one day event.

The overall presentation for the event can be found on our website, under Documents & Reports > Publications.

External Stakeholder Consultation Workshop on Social and Gender Integration Plan (SGIP)

Rajendra Thanju Quality Assurance Manager MCA-Nepal, presenting at the event.

On 21 November 2019, MCA-Nepal organized a half-day stakeholder consultation workshop on SGIP for the Electricity Transmission Project and Road Maintenance Project.  The objectives were to get feedback from the concerned agencies, build ownership and finalize the SGIP document.  

Troy Kofroth, Resident Country Director of MCC, talking about MCC’s Compact and the projects MCA-Nepal is working for.

Mr. Troy E. Kofroth, Resident Country Director, MCC welcomed the participants. Ms. Shalini Tripathi, Deputy Executive Director (Management), MCA-Nepal presented briefly on the Compact and the MCA-Nepal projects. She also highlighted SGIP’s significance in the Compact for which she requested critical feedback and inputs from participants. Ms. Yesiareg Dejene, Gender and Social Inclusion Director, MCC, Washington DC presented on MCC’s approach to gender and social inclusion where she shared Gender Policy 2011 and Operation Documents of MCC which requires gender and social analysis at all stages to inform Compact design. She also presented briefly on the key findings of Social and Gender Assessment Reports of Nepal which provided the base for SGIP. GSI Specialists for MCA-Nepal Ms. Kalawati Rai and Mr. Tara Gnyawali presented the action plans with regard to social and gender inclusion in the different sub-projects inside the Compact.

Ms. Yeshiarege Degene, the Director of GSI at MCC, USA presenting her findings on GSI status of Nepal.

The discussion session in the workshop gave an opportunity to all participants to put forth their views and share their expertise. Participants shared good practices and provided feedbacks on ways to make women and disadvantaged group participate and create opportunities in the project. Mr. Khadga Bahadur Bisht, Executive Director, MCA-Nepal delivered the closing remarks and thanked the participants for their time and ensured their comments would be incorporated in the final document.  

Around 15 people took part including Ms. Sabita Pandey, Section Officer, Electricity Regulation Commission/Nepal Electricity Authority; Ms. Chetna Thapa, Director, Road Board Nepal; Mr. Ram Prasad Gauli, Officer, Road Board Nepal; Mr. Hemantaraj Ghimire, Environmentalist, Department of Energy Development; Mr. Shiva Raj Adhikari, Senior Division Engineer, Department of Road;  Ms. Subha Shrestha, Sociologist, Department of Road; Ms. Sita Duwadi, Section Officer and Gender Focal Person, Ministry of Federal Affairs and General Administration; Ms. Balkumari Darlami, President, Shakti Samuha and Mr. Narayan Gyanwali, Chairperson, National Association of Community Electricity Users Nepal (NACEUN).

Kala Rai, GSI specialist MCA-Nepal presenting about the action plans with regard to social and gender inclusion in the different sub-projects inside the Compact.

District level Stakeholders Consultation held successfully in Parasi

MCA-Nepal organized a half-day District-level Consultation Program at the DCC Hall in Parasi district on 20 Nov 2019 with an overall objective to share information on MCA-Nepal and the ETP, focusing on its activities in Parasi. The participants were heads of various government entities in the district, Members of Central and Provincial Parliaments, local government representatives from affected municipalities and wards, NGO Federations, media and other concerned stakeholders on the subject matter.

The main objective of the event was,

  • To generate awareness among local stakeholders about MCA-Nepal and the importance of the ETP project
  • To sensitize district government agencies, people’s representatives and local stakeholders on the potential social and environmental impact of project activities and mitigation measures adopted
  • To build a common understanding and consensus among stakeholders about safeguard policies in place for affected communities

The event started with an introduction about the agency by Mr. Khadga Bisht and its governance structure under the Ministry of Finance. He also shared the background of Millennium Challenge Corporation’s work around the world, highlighting the reason Nepal was selected for a 500 million USD grant by MCC and the process undertaken by the Government of Nepal to identify the projects and declaration of ETP as a national pride project. He also talked about the CPs and the status of the program. Mr. Bisht also shared the inter-relationship between electricity consumption and economy citing examples of Asian countries like Bhutan and Laos in his presentation. He explained the status of energy consumption and protection in Nepal and challenges in the development of transmission lines. In his last presentation, Mr. Bisht shed light on some of grievances regarding the alignment of the transmission line received from Parasi district and explained the process and ways of addressing them.

Sharing the probable impact of the project in the lives of people and the environment, Mr. Shyam Upadhyaya highlighted the opportunities in employment, industrial and economic growth. Additionally he informed participants on how different international and national policies will be followed for the environment and social protection activities.

Mr. Rajendra Thanju presented on the safeguarding policies of the project which focuses on protecting the people and environment and enhancing environment sustainability. The Chief Guest of the program, Mr. Harijan acknowledged the importance of electricity transmission lines and the construction of electricity sub-station in the national context and emphasized that there should not be injustice against local people in the process of the implementation of the national pride project.

Presiding over the event, Mr. Ray, the Chief of District Coordination Committee mentioned that a win-win situation should be created for both of the parties to the project i.e. the government and land-owners regarding land acquisition and compensation issues. Ms. Bhagawati Devi Bhandari, a parliamentarian at the Provincial Parliament of Province No. 5 recalled the days when she herself was a victim of a compensation process in a project implemented by the government earlier and appealed to the management to pay attention to provide sufficient compensation to the affected people.

The Special Guest of the program Mr. Marasini, the CDO of Parasi district stated that the compensation distribution against the land acquisition was going to be the most challenging task in the process, but the project should not be disturbed in the name of ‘Sufficient Compensation’. He also provided commitment to ensure necessary support for a project that has been identified as a national pride project by the government.