KATHMANDU: The U.S. Embassy Nepal on Wednesday joined MCA-Nepal and Government of Nepal partners to hold the groundbreaking ceremony of the Dhanakhola–Lamahi Road Rehabilitation Works under the MCC Nepal Compact, marking a key milestone in the project’s implementation.

The milestone reflects the strength of the U.S.-Nepal partnership and renewed progress on one of Nepal’s most significant infrastructure efforts.

The broader Compact represents a $747 million joint investment, including $550 million from the Millennium Challenge Corporation (MCC) and $197 million from the Government of Nepal.

Speaking at the event, Chargé d’Affaires a.i. Scott Urbom said, “This project represents much more than a single investment. It is a milestone that reflects the strength of our bilateral relationship and our shared commitment to delivering tangible results for the people of Nepal and American businesses working here through the Compact.”

Through its Road Maintenance and Electricity Transmission Projects, the MCC Nepal Compact aims to strengthen Nepal’s road network, lower transportation costs, improve electricity reliability, and support long-term economic growth and cross-border power trade.

The Compact, officials said, demonstrates what the United States and Nepal can achieve together to create lasting opportunities for both nations.