MCA-Nepal has signed two essential contracts totaling USD 23.66 million for road maintenance under the Millennium Challenge Corporation (MCC) Nepal Compact.
These contracts jointly represent a major step forward for the Compact’s goal to advance Nepal’s long-term economic growth and development, MCA-Nepal said in a press statement.
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.
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, the statement says.
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 U.S. 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 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 statement reads.
The upgrading and maintenance works will be conducted with new technologies, i.e., Full Depth Reclamation and Superior Performing Asphalt Pavement (Superpave), for the first time in Nepal, the statement says.
Addressing the event, the U.S. Ambassador to Nepal Dean Thompson said, “The upgrading of the Dhan Khola - Lamahi Road project and the Narayanghat - Mugling Road Maintenance project represent 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, “As the Compact delivers essential road infrastructure across Nepal, these two contracts will introduce American excellence in road maintenance.”
Dr. Dhani Ram Sharma, Joint Secretary at the Ministry of Finance, expressed his 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. Sushil Babu Dhakal, Joint-Secretary at the Ministry of Physical Infrastructure and Transport, 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 said that this project will contribute meaningfully to improving Nepal's road reliability and serve as a practical model that Nepal can replicate more broadly across its road network. He said well-built and well-maintained roads are not merely a consequence of economic growth; they are one of its essential drivers.
MCA-Nepal Executive Director Khadga Bahadur Bisht said, “It is indeed a remarkable milestone to sign two contracts to move ahead with the Road Maintenance Project. The activities under the contracts will help in lowering trade and vehicle operation costs, increase road safety, decrease travel time, and improve travel quality.
