MCA-Nepal Signs $23.66M Contracts to Upgrade Highways with New Tech

Millennium Challenge Account Nepal (MCA-Nepal) has signed two contracts totaling USD 23.66 million to upgrade and maintain critical sections of Nepal’s national highway network under the Millennium Challenge Corporation (MCC) Nepal Compact.

The agreements include a USD 20 million contract with Sharma–Kumar Joint Venture to upgrade the 40-kilometer Dhankhola–Lamahi section of the East–West Highway, Nepal’s main east–west arterial road.

The project will widen the roadway to 12 meters, comprising a 7-meter carriageway and 2.5-meter shoulders on both sides, and will use Full-Depth Reclamation (FDR) and Superior Performing Asphalt Pavement (Superpave) technology for the first time in Nepal, says MCA Nepal.

A separate USD 3.66 million contract was awarded to Intercontinental Consultants and Technocrats Pvt. Ltd. (ICT) for supervision of the upgrading works, as well as for design and construction supervision of periodic maintenance on the Narayanghat–Mugling road section, one of Nepal’s busiest highway corridors.

The Dhankhola–Lamahi contract was signed in Kathmandu today by MCA-Nepal Executive Director Khadga Bahadur Bisht and Saurav Sharma from the contractor side.

According to MCA-Nepal, the introduction of FDR and Superpave technology is expected to enhance pavement durability, reduce long-term maintenance costs and improve overall road performance.

The Road Maintenance Project is a key component of the MCC Nepal Compact, which aims to reduce transportation costs, improve road conditions and support economic growth by strengthening Nepal’s strategic highway network.