Kathmandu, Sept. 15: Millennium
Challenge Corporation (MCC), a United States government agency, has agreed to
provide a financial grant support of 500 million US Dollars for the
implementation of infrastructure projects in Nepal.
The total cost of the
project will be 630 million Dollars, and Nepal will contribute 130 million
Dollars to it.
An agreement was signed
for the project between Nepal and the MCC amidst a function in Washington DC on
Friday, Embassy of Nepal in Washington said in a statement.
Finance Minister
Gyanendra Bahadur Karki and MCC Chief Executive Officer Jonathan Nash signed on
the agreement on behalf of Nepal and the MCC respectively.
The project aims at
constructing about 300 km electricity transmission lines and supporting the
maintenance of about 300 km roads in different parts of the country.
It is the first MCC
Compact agreement in South Asia for boosting up regional energy connectivity
and minimise transportation cost for higher economic growth and job creation.
“Nepal government takes
the ownership of the project and commits to complete it on time. MCC support
will also help Nepal’s effort to move forward the reform agenda in energy and
transport sector, good governance, procurement, new business opportunities and
technology transfer,” reads the statement.
Minister Karki said
that the Compact agreement opened up additional avenues of the US-Nepal
bilateral relations and economic cooperation.
“This is a remarkable
support of new US Administration to Nepal which has created a new milestone in
Nepal’s development endeavour,” said Nepali Ambassador to the US Dr. Arjun
Kumar Karki.
US Deputy Secretary of
State John J. Sullivan, US Ambassador to Nepal Alaina B. Teplitz, senior
officials from the US and Nepal government were present on the occasion.
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