MCC acknowledges decision to ratify grant support

 Kathmandu, Mar. 2

The Millennium Challenge Corporation (MCC) has acknowledged Nepal’s decision to ratify the MCC Compact of US$500 million grant from the parliament.

The Federal Parliament has decided to ratify the agreement on February 27.

“The decision to ratify the Nepal Compact has always rested with the Government of Nepal as a sovereign democratic nation. Ratification of the compact enables work to continue towards implementing the five-year programme, which will create the conditions for a more reliable supply of electricity, lower transportation costs, and help create more jobs for the Nepali people,” the MCC said in a statement on Wednesday.

Nepal had signed the MCC grant in 2017 after determining its goals to modernise Nepal’s energy and transportation sectors.

This year marks the 75th year of diplomatic relations between Nepal and the United States.

“MCC and the American people have stood with Nepal through these changes and supported the country with development aid, disaster response and preparedness assistance, health and education programmes, and more,” read the statement.

The United States’ relationship with Nepal is broader than one agreement, and we will continue to support the country, its democratic values, and its long-term economic prosperity.

Meanwhile, Nepal Chamber of Commerce (NCC) has urged for the effective implementation of the MCC project.

“The transmission line will support the energy trade thus attract investment in the energy sector while the upgradation of the road will facilitate in easy trade,” it said in a statement.

NCC President Rajendra Malla said that the 400KV transmission line from Shankharapur-Ratamte-Damauli-Butwal and substations can be a milestone for the cross-border energy trade.

“This project will help create employment and economic growth. Therefore, all stakeholders should join hands to make it a success. In the same line, environment should be created to complete the national pride projects in time,” he said. 

Published in The Rising Nepal daily on 3 March 2022.