Kathmandu . Millennium Challenge Account Nepal (MCA-Nepal) has signed two major contracts worth a total of USD 23.66 million for road maintenance and upgrading works under the Millennium Challenge Corporation (MCC) Nepal Compact, marking a significant milestone in strengthening Nepal’s road infrastructure.
Of the total amount, a USD 20 million contract has been awarded to Sharma–Kumar Joint Venture for road upgrading works on the Dhan Khola–Lamahi section of the East-West Highway. The project will use Full-Depth Reclamation (FDR) and Superpave asphalt technology, being introduced in Nepal for the first time. In addition, MCA-Nepal has signed a USD 3.66 million contract with Intercontinental Consultants and Technocrats Pvt. Ltd. (ICT) for consultancy services, including supervision of the Dhan Khola–Lamahi upgrading works and design and construction supervision for periodic maintenance of the Narayanghat–Mugling Road Section.
The contract for the Dhan Khola–Lamahi road was formally signed and exchanged by MCA-Nepal Executive Director Khadga Bahadur Bisht and Saurav Sharma, authorized representative of Sharma–Kumar Joint Venture, in the presence of U.S. Ambassador to Nepal Dean Thompson, senior officials from the Ministry of Finance, Ministry of Physical Infrastructure and Transport, Department of Roads, MCA-Nepal Board Members, and MCC and MCA-Nepal officials.
The project includes construction of a 7-meter carriageway with 2.5-meter shoulders on both sides, making the road 12 meters wide, along a 40-kilometer stretch of the East-West Highway. The works will also cover periodic maintenance of the Narayanghat–Mugling road section. The use of Full Depth Reclamation and Superior Performing Asphalt Pavement (Superpave) is expected to improve durability, road safety, and long-term cost efficiency.
Addressing the signing ceremony, U.S. Ambassador Dean Thompson said the projects represent more than individual contracts, calling them a milestone in the U.S.–Nepal partnership and the continued momentum of the MCC Nepal Compact. He noted that the contracts would introduce American excellence in road maintenance technology to Nepal.
Joint Secretary at the Ministry of Finance Dr. Dhani Ram Sharma expressed confidence that the adoption of new technologies would pave the way for sustainable and cost-effective road maintenance in Nepal. Similarly, Joint Secretary at the Ministry of Physical Infrastructure and Transport Sushil Babu Dhakal said the progress reflects MCA-Nepal’s commitment to improving road quality through innovative approaches.
MCC Nepal Acting Country Director Sanjay Poudyal highlighted that reliable and well-maintained roads are essential drivers of economic growth and said the project could serve as a model for broader replication across Nepal’s road network.
Executive Director Khadga Bahadur Bisht stated that the project would help lower trade and vehicle operation costs, reduce travel time, enhance road safety, and improve overall travel quality. He also acknowledged the support of the Government of Nepal, MCC, and key stakeholders in advancing the Road Maintenance Project.
The Road Maintenance Project is a key component of the MCC Nepal Compact, which aims to reduce transportation costs, improve road conditions, and support Nepal’s long-term economic growth and development.
