NFA (KATHMANDU, 2 March 2022) – Three days after the ratification from Nepal’s parliament, the Millennium Challenge Nepal Compact, the MCC headquarters acknowledged the decision saying the ratification enables work to continue towards implementing the electricity and road projects.
Issuing a statement on Tuesday, the MCC headquarters has said the ratification 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 Government of Nepal signed the MCC grant in 2017 after determining its goals to modernise Nepal’s energy and transportation sectors with the hope of helping more than 23 million Nepalis, which is nearly 80 percent of the total population,” reads the statement.
Registered in the parliament secretariat in July 2019, the MCC compact was ratified after 32 months as the ruling parties agreed for its parliamentary endorsement together with an interpretative declaration.
The 12-point declaration clarifies Nepal’s understanding on the MCC compact and has a provision that Nepal will terminate the grant agreement if it goes beyond the declaration.
The MCC was ratified in the year that marks the 75th year of diplomatic relations between Nepal and the United States. “During these 75 years, Nepal has seen monumental and incredible changes. 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 programs, and more,” reads the MCC 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.”
The statement says that in the nearly 20 years since its inception, MCC compacts have helped alleviate poverty around the world by forming partnerships with developing countries that are committed to economic freedom, investing in their citizens, and good governance, which includes promoting democratic principles and combating corruption.
Also on Tuesday night, US Secretary of State Anthony Blinken told Prime Minister Shet Bahadur Deuba that the US noted MCC ratification by Nepal Parliament.