MCA waits for parliament’s nod

Kathmandu, Dec. 22

Millennium Challenge Account (MCA) – Nepal has appealed to the parliament for the timely ratification of the Millennium Challenge Compact (MCC) as the delay in approving it from the legislature might delay the commencement of the project set for 30 June 2020.

Parliament's ratification is needed as per the Vienna Convention on Law on Treaties between the States according to the agreement signed between the governments of Nepal and the United States of America.

"When parliament ratifies it, the programme will be implemented as a law which ensures smooth development," said Khadga Bahadur Bisht, Executive Director of MCA-Nepal at an interaction on Sunday.

The USD 630 million ( Rs. 71.19 billion), $500 million from the MCC and $130 million from Nepal – programme, aims at developing large transmission lines, including Butwal-Gorakhpur cross-border transmission facility, and rehabilitate strategic roads.

As per the agreement between the government of Nepal and MCC – an agency of the United States of America, in September this year, the programme must be completed within five years from the date of its implementation and in case of inability to use up the budget, the remaining money would go back to the US government.

Two conditions yet to be met

The compact has outlined six-condition precedents to be achieved as necessary pre-requisites before the entry-into-force, set for June 30 next year.

According to Bisht, out of the six, four have already been met with the October agreement for cross-border line between Nepal and India.

The MCC had set conditions that the MCA programmes should be announced as the national pride project, agreement between Nepal and India for cross-border transmission line, project implementation agreement between the government and MCC, ratification from the parliament and access to the construction site.

Parliamentary ratification and access to site are the two major remaining conditions that will be required to ensure Nepal can access the funds allocated to implement the programme on time.

"MCC Nepal is in the final stage of preparatory works required for the implementation of its projects that aim to increase the availability and reliability of electricity, maintain road quality and facilitate power trade between Nepal and the region to help spur investments and accelerate economic growth," said Bisht.

He said that the legislative's ratification of the programme was not a new phenomenon as 17 countries had ratified the MCA in their respective countries.

The MCC has been expanded to 27 countries and executed in 17 countries while 10 nations are in line to be incorporated in the programme.

"There has been rumours that the MCA will supersede the national law which is not true. The term 'supersede' means that when there were any disputes or challenges while executing the programme, it would be resolved through the Vienna Convention," Bisht tried to respond to the criticism raised by some leaders, including those from the ruling party. Nepal is a signatory of the Vienna Convention.

AG audits the programme

He also said that the Auditor General, the supreme audit institution of Nepal, had been performing audit works of the programme and would continue to do so. "So far as the question of US direct interventions in the project is concerned, there is no direct influence. The Kathmandu-based US Embassy oversees the project, but all the decisions are taken by MCA-Nepal," Bisht said.

As per the programme rules, priority of projects is set by the recipient country and the transmission line and road development in Nepal was not dictated by the MCC, but Nepal has given priority to energy-sector development through its policy and programmes.

The programme is result-oriented and is executed through the institutions developed by the concerned country. Enough time is provided for the project preparedness and deadline is set for the execution and if anything remains for after the deadline, the remaining money goes back.

Energy Expert Gyanendra Lal Pradhan expressed wonders why some politicians were going against the project that would immensely benefit the country.

"We will have surplus energy in a couple of years as 800 MW electricity from the independent power producers and 1000 mw from the government would be connected to the national grid soon," he said, "The project is about creating connectivity network that will support us in cross-border trading of energy."

He also said that without the MCA, Butwal-Gorakhpur transmission line project would not have moved ahead.

MCC Programme in Nepal

The Electricity Transmission Project will build 312 km of 400 kV electricity transmission lines and three substations and provide technical assistance for the power sector in Nepal.

The 312 km of transmission line will pass through 30 municipalities of 10 districts. Altogether 856 towers will be installed to support the transmission lines.

The locations for the three substations are in Ratmate, Damauli and New Butwal.

The Road Maintenance Project aims to enhance current practices in the maintenance of Nepal’s strategic roads network and will provide technical assistance to the Department of Roads (DoR) and Roads Board Nepal.

Maintenance interventions will include pavement improvement techniques and include safety enhancement features. New pavement improvement technology adopted are Full Depth Recycling (FDR) and superpave asphalt concrete which follows the principle of recycling existing pavement material.

In agreement with the DoR, the project has selected Bhalubang-Lamahi (27 KM) section of the East-West Highway as a pilot.

After the success of this pilot, MCA-Nepal will exercise the technology along Chandrauta-Bhalubang (35Km) followed by Lamahi-Shivakhola (37Km) sections of the East-West Highway.

Published in The Rising Nepal daily on 23 December 2019.