MCA-Nepal marks start of upgrade to 40km Dhan Khola–Lamahi section of East-West Highway

DANG: Millennium Challenge Account Nepal (MCA-Nepal) on Wednesday marked the start of upgrading the 40-kilometre Dhan Khola–Lamahi section of the East-West Highway.

The project will introduce Full Depth Reclamation (FDR) and Superpave, modern construction methods being used in Nepal for the first time. MCA-Nepal said these techniques will improve quality, durability and sustainability by creating a stronger, longer-lasting road surface, reusing existing asphalt materials and reducing environmental impacts. The works also include widening the road to 12 metres, with a 7-metre carriageway and 2.5-metre shoulders on both sides.

Addressing the launch event, Chief Minister of Lumbini Province, Chet Narayan Acharya, welcomed the adoption of the new technologies and highlighted expected local benefits. “This is a major step forward for our province and the people who rely on this highway every day. The upgrading of this road section will not only make travel safer and more reliable, but also open up new opportunities for local businesspeople, farmers, and entrepreneurs,” he said.

Scott Urbon, Charge d’Affaires a.i. at the US Embassy, said the project was a milestone in the bilateral partnership. “Today’s launch of the Dhan Khola–Lamahi road upgrade marks an important milestone in the partnership between the United States and Nepal. Through the MCC Nepal Compact, we are investing in high-quality, durable infrastructure that will lower transportation costs, improve safety, and connect communities to markets and opportunities,” he said, adding that the project “reflects our trust in Nepal’s future and our joint dedication to sustainable economic growth.”

Sushil Babu Dhakal, Joint Secretary at the Ministry of Physical Infrastructure and Transportation (MoPIT) and MCA-Nepal board member, said MCA-Nepal’s investments are designed to complement the Government of Nepal’s plans and programmes. “This collaboration reflects our shared commitment to building resilient infrastructure and expanding economic opportunities for our communities. I appreciate the efforts of all involved and look forward to the timely completion of this important project,” he said.

MCC Deputy Resident Country Director Sanjay Poudyal said the milestone reflects MCC’s commitment to supporting Nepal in building resilient, cost-effective infrastructure using advanced technologies that ensure long-term performance.

Khadga Bahadur Bisht, MCA-Nepal executive director, said the commencement of works was a significant step in implementing the Road Maintenance Project under the MCC Nepal Compact. “MCA-Nepal remains committed to delivering this project efficiently, transparently, and to the highest quality standards,” he said, and acknowledged support from the Government of Nepal, the Millennium Challenge Corporation and other stakeholders, including the MoPIT and the Department of Roads.

The Road Maintenance Project is a key component of the MCC Nepal Compact and aims to lower transportation costs and improve road conditions across Nepal.

The MCC is an independent US government agency that provides time-limited grants and assistance to countries that meet standards for good governance and economic policy. MCA-Nepal is a government-owned legal entity established in April 2018 to implement the MCC Nepal Compact projects.