MCA-Nepal Signs USD 23.66 Million Contracts to Advance Road Maintenance Projects
Millennium Challenge Account Nepal (MCA-Nepal) has signed two major contracts worth USD 23.66 million to implement key components of the Road Maintenance Project under the Millennium Challenge Corporation (MCC) Nepal Compact. The agreements mark a significant milestone in Nepal’s efforts to improve road infrastructure and support long-term economic growth.
The contracts were signed on December 22, 2025, at the Lal Durbar Convention Centre in Kathmandu. Of the total amount, USD 20 million has been awarded to Sharma–Kumar Joint Venture for road upgrading works on the Dhankhola to Lamahi section of the East-West Highway. The project will utilize Full-Depth Reclamation and Superpave technology as part of the Compact’s Road Maintenance Project. In addition, a USD 3.66 million contract has been signed with Intercontinental Consultants and Technocrats Pvt. Ltd. for consulting services, including supervision of the upgrading works and design and construction supervision for periodic maintenance of the Narayanghat to Mugling road section.
The contract for the Dhankhola–Lamahi road works was signed and exchanged by MCA-Nepal Executive Director Khadga Bahadur Bisht and Saurav Sharma, authorized representative of Sharma–Kumar Joint Venture. The signing ceremony was attended by United States 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, Director General of the Department of Roads Dr. Bijaya Jaishi, MCA-Nepal Board Members, MCC Nepal Acting Country Director Sanjay Poudyal, and senior officials from MCC and MCA-Nepal.
The project involves upgrading a 40-kilometer section of the East-West Highway with a 7-meter carriageway and 2.5-meter shoulders on both sides, expanding the total road width to 12 meters. It also includes periodic maintenance of the Narayanghat to Mugling road section. The use of Full-Depth Reclamation and Superior Performing Asphalt Pavement technology represents the first application of these advanced road maintenance techniques in Nepal.
Addressing the event, U.S. Ambassador Dean Thompson stated that the two projects represent more than individual contracts. He noted that they reflect the strength of the U.S.–Nepal partnership, the momentum of the MCC Nepal Compact, and a shared commitment to delivering tangible results for the people of Nepal while introducing advanced American road maintenance technologies.
Joint Secretary at the Ministry of Finance Dr. Dhani Ram Sharma expressed confidence that the introduction of these technologies will enable sustainable, effective, and cost-efficient road maintenance in Nepal, adding that MCA-Nepal is well positioned to complete the project within the designated timeline. Similarly, Joint Secretary at the Ministry of Physical Infrastructure and Transport Sushil Babu Dhakal highlighted that the progress demonstrates MCA-Nepal’s continued efforts to improve road quality through the adoption of new technologies.
MCC Nepal Acting Country Director Sanjay Poudyal emphasized that the project will significantly improve road reliability and serve as a model that can be replicated across Nepal’s road network. He noted that well-built and well-maintained roads are not merely an outcome of economic growth, but a critical driver of it.
MCA-Nepal Executive Director Khadga Bahadur Bisht described the signing of the two contracts as a remarkable milestone. He stated that the Road Maintenance Project will help lower trade and vehicle operating costs, enhance road safety, reduce travel time, and improve overall travel quality. He also acknowledged the continued support of the Government of Nepal, the Ministry of Physical Infrastructure and Transport, the Department of Roads, the MCA-Nepal Board, and MCC.
The Road Maintenance Project is a core component of the MCC Nepal Compact, which aims to reduce transportation costs, improve road conditions, and foster economic growth. MCA-Nepal, established on April 18, 2018, under the Development Board Act, serves as the accountable entity responsible for implementing the Compact. The MCC Nepal Compact represents a total investment of USD 747 million, including USD 550 million in grant funding from the United States and USD 197 million from the Government of Nepal, focusing on electricity transmission expansion, road improvement, and private sector development.
