Millennium Challenge Account Nepal (MCA-Nepal) has signed two contracts worth USD 23.66 million under the Millennium Challenge Corporation (MCC) Nepal Compact for major road upgrading and maintenance works.
The contracts include a USD 20 million agreement with Sharma–Kumar Joint Venture for upgrading the 40-kilometre Dhan Khola–Lamahi section of the East–West Highway using Full-Depth Reclamation and Superpave technology. MCA-Nepal has also signed a USD 3.66 million contract with Intercontinental Consultants and Technocrats Pvt. Ltd. for supervision and design services related to the road upgrading and the periodic maintenance of the Narayanghat–Mugling road section.
The contracts were exchanged by MCA-Nepal Executive Director Khadga Bahadur Bisht and representatives of the contractors in the presence of U.S. Ambassador to Nepal Dean Thompson, senior officials from the Ministry of Finance and the Ministry of Physical Infrastructure and Transport, the Department of Roads, and MCC representatives.
The project will introduce advanced road maintenance technologies for the first time in Nepal, including Full-Depth Reclamation and Superior Performing Asphalt Pavement (Superpave). The upgraded highway section will feature a 7-metre carriageway with 2.5-metre shoulders on both sides.
Speaking at the signing ceremony, Ambassador Thompson said the projects mark an important milestone in the US–Nepal partnership and reflect the MCC Compact’s commitment to delivering tangible infrastructure outcomes. Officials from the Government of Nepal said the adoption of new technologies would improve road quality, safety, and long-term cost efficiency.
The Road Maintenance Project is part of the MCC Nepal Compact, a USD 747 million initiative jointly funded by the United States and the Government of Nepal, aimed at reducing transportation costs, strengthening infrastructure, and supporting long-term economic growth.