MCC approves additional $50 mn grant for Nepal

Kathmandu, Nov. 20

The Millennium Challenge Corporation (MCC) has announced an additional grant finance of US$ 50 million for MCC Nepal Compact.

MCC is a United States government agency that provides large-scale assistance to developing countries to promote economic growth and reduce poverty.

The US Embassy in Kathmandu informed in a statement on Wednesday that the Government of Nepal and the US government’s MCC have announced the additional grant which brings the Compact’s total value to US$747 million - US$550 million from the United States and US$197 million from Nepal.

"The added resources will help deliver the Compact’s core objectives, including completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling increased regional power trade," read the statement.

By improving grid reliability and market access, the Compact is expected to support international connectivity and promote American excellence and best practices in energy infrastructure.

According to the Embassy, the compact also expands opportunities for US companies and technology to enter Nepal’s market.

"For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity. The MCC Nepal Compact continues that record through no-debt, grant-based assistance focused on high-impact infrastructure," reads the statement. 

Published in The Rising Nepal daily on 21 November 2025.