Saturday, July 15, 2023

Lu discusses progress of MCC-Compact, calls on PM, Foreign Minister, leaders

Kathmandu, July 14

Assistant Secretary of State of the United States of America for South and Central Asian Affairs Donald Lu has expressed concerns over the implementation and progress of the MCC Nepal Compact, a grant project of the Millennium Challenge Corporation (MCC) of the US government.

During a meeting with Foreign Affairs Minister of Nepal, NP Saud, at the latter's office in the Singha Durbar on Friday afternoon, Lu discussed the implementation of the project.

Lu was in Nepal for a one-day visit as a part of his South Asia entourage.

According to the spokesperson for the US Embassy in Nepal, Lu discussed the progress of the MCC-Compact to date with Foreign Minister Saud.

The project will commence implementation in August and within the next five years provide essential electrical infrastructure, improve capacity for road maintenance, and create thousands of jobs, said the embassy.

Nepal signed an agreement with the MCC in September 2017 for a USD 630 million project to construct large transmission lines, including 312 km of 500 kV Butwal-Gorakhpur cross-border transmission facility and three sub-stations, and rehabilitate strategic roads.

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

The project must be completed within five years from the commencement date, and if it is not completed, the remaining fund would be routed back to the MCC. A controversy whether the pact should be ratified by the parliament in Nepal and if it was a part of the controversial Indo-Pacific Strategy caused the delay in the implementation of the project which was supposed to be kicked off on 30 June 2020.

 

Post-graduation support

According to the secretariat of FM Saud, the two talked about Nepal's upgrading to the 'developing nation' from the Least Developed Countries (LDC) in 2026 and the continuation and increase of assistance from the US to Nepal and the bilateral interests between the two countries.

Nepal's private sector is apprehensive about losing favourable policies like the 'Generalised System of Preference (GSP)' in the USA. Likewise, the US had allowed duty-free entry of 77 Nepali goods as trade support in the aftermath of the 2015 earthquake. The facility will also expire in 2025. Nepal wants it to be continued and has been lobbying with the USA for the same.

Assistant Foreign Minister Lu pledged the continued support of the United States to Nepal as an old development partner in fulfilling development aspirations.

During the meeting, he praised the contribution made by the Nepali community in America and the progress achieved in the American economy.

Meanwhile, Lu called on Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to express his condolences on the demise of the latter's spouse Sita Dahal.

According to the US Embassy, Lu's visit was a part of his regular diplomatic engagement in the region. "High-level diplomatic engagements are a routine part of strengthening both US-Nepal and regional partnerships in furtherance of a more secure, sovereign, prosperous, and democratic world,” it said.

 

Meeting with Oli, Deuba

Lu also met the leader of the main opposition party, CPN (UML), KP Sharma Oli and President of the Nepali Congress, Sher Bahadur Deuba.

Former Prime Minister Deuba said in a tweet that he had a productive meeting with Lu. "We had constructive discussions on further strengthening Nepal-US ties. Grateful for the US Government and Secretary Lu’s unwavering support to promote peace, democracy and development in Nepal," he said.

Likewise, the Embassy spokesperson said that Lu discussed Nepal’s achievements on its Summit for Democracy commitments, and the recent bolstering of human rights protections in Nepal with the leaders.

During his regional tour, Assistant Secretary Lu also visited Bangladesh and India as well. He returned to the USA on Friday evening.

   Published in The Rising Nepal daily on 15 July 2023.   

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