Govt committed to timely completion of MCC projects: PM Prachanda

Kathmandu, Oct. 4

Prime Minister Pushpa Kamal Dahal Prachanda has assured that the government is committed to timely implementation of transmission line and road upgrading projects funded by the Millennium Challenge Account (MCA) Nepal, with grant support from the United States' Millennium Challenge Corporation (MCC).

He said this during a celebration held in the capital to mark the launch of the MCC Nepal Compact. Prachanda emphasised that the MCA Project signifies the continuation of a strong partnership between Nepal and the USA.

The CEO of MCC, Alice P. Albright, joined Prime Minister Prachanda at the event, which was hosted by MCA-Nepal. The MCC Nepal Compact is a joint endeavour funded by both the Government of Nepal and MCC.

Prachanda acknowledged the United States as one of the first development partners to support Nepal's socio-economic and political development. He emphasised that the timely implementation of the MCA project will instill confidence in development partners and encourage investment in the hydropower sector while facilitating energy trade.

The Prime Minister highlighted the government's priorities, which include modernising agriculture, infrastructure development, tourism, and human resource creation. He urged investors to consider these sectors and sought support from development partners in these areas.

The five-year programme, launched on August 30^th, was initiated with an Entry into Force (EIF) letter exchange between Finance Minister Dr. Prakash Sharan Mahat and MCC Vice President for Compact Operations, Cameron Alford. The EIF represents a crucial milestone in MCC compacts, indicating that all necessary conditions and preparations are in place for successful completion of compact projects within a five-year timeframe.

Prime Minister Prachanda noted that MCC-funded projects open new opportunities for economic cooperation between Nepal and the USA. He expressed hopes for enhanced trade connectivity throughout Asia and emphasised the significant contribution of the compact's projects to Nepal's economic development and poverty reduction. He extended his gratitude to the US Government for their ongoing cooperation and assistance.

 

 

Finance Minister Dr. Mahat expressed confidence that the MCC Nepal Compact's projects would support Nepal's growth and benefit its citizens through improved roads and reliable sypply of electricity. He also confirmed the government's plan to allocate US$ 197 million to the project and pledged full support for its successful implementation.

Regarding recent high-bidding activity for MCA projects, Dr. Mahat considered it a temporary hurdle and expressed confidence in its resolution. He further affirmed the government's commitment to ensuring no time or cost overruns in the project.

MCC's CEO Albright expressed readiness to partner with the Government of Nepal, acknowledging the ambitious goals set for the programme. She highlighted the importance of addressing inevitable challenges together to deliver a successful programme.

The US Ambassador to Nepal, Dean R. Thompson, underlined the significance of the MCC-Nepal Compact in supporting economic growth for the Nepali people and strengthening the enduring friendship between Nepal and the United States.

Khadga Bahadur Bisht, Executive Director of MCA Nepal, shared that the road maintenance design is in its final stage. He emphasized collaboration with stakeholders like the Nepal Electricity Authority, Department of Roads, and Roads Board for effective project implementation.

During her three-day visit, CEO Albright engaged with key government officials and stakeholders involved in the Compact's implementation. She participated in a tree-planting ceremony to emphasize MCC's commitment to environment protection and climate preservation. Albright also observed ongoing work with the Department of Roads to train engineers in using climate-smart, sustainable technology for creating a safer transportation network that is easier to maintain and better for the environment.

The Government of Nepal and MCC signed the MCC Nepal Compact on September 14, 2017, incorporating two projects: the Electricity Transmission Project and the Road Maintenance Project, aimed at providing more reliable electricity and cost-effective transportation in Nepal.

Published in The Rising Nepal on 5 October 2023.