MCA-Nepal waiting for early adoption of the US grant project

MCA-Nepal waiting for early adoption of the US grant project

By Our Reporter

After Nepal failed to endorse the Millennium Challenge Corporation (MCC) from the parliament before its “entry into force” by given deadline of 30 June, the Millennium Challenge Account Nepal (MCA-Nepal) has asked all relevant authorities to complete remaining Conditions Precedent (CPs), including parliamentary ratification of the Compact as soon as possible.

In a press release issued by MCA-Nepal on 29 June, on the eve of expire of the deadline, has stated that it has made significant progress in the preparatory phase of implementing the Millennium Challenge Corporation (MCC) Nepal Compact. However, in recent months progress has been hampered due to delays in parliamentary ratification of the Compact and the global pandemic due to COVID-19. Consequently, the previously targeted date of 30 June 2020 (Ashad 16, 2077 BS) for taking the program on implementation i.e. the Entry Into Force (EIF) is no longer achievable.

“MCA-Nepal is working with all relevant authorities to complete remaining Conditions Precedent (CPs), including parliamentary ratification of the Compact as soon as possible, to Enter into Force and begin implementation.”

“We acknowledge the media’s interest on the Compact and would like to express that MCA-Nepal remains committed to the Nepal Compact. We will share additional information as it develops,” the press release states.

Meanwhile, the US Embassy here has expressed concern on delayed project ratification.

The Embassy, issuing a statement on 29 June evening, has stated, “The United States is aware that Parliament has not yet ratified the MCC Compact. Ratification is the next step needed to proceed with the $500M grant, which the two countries signed in September 2017 and which Nepal committed to ratify by September 2019.”  “Delaying ratification is delaying the benefits of more jobs and increased economic growth for nearly 23 million Nepalis,” the Embassy has stated.

“Accepting this grant is Nepal’s choice but the availability of the funding is not open-ended,” the Embassy has alerted.

“Tangible, near-term steps in Nepal are necessary to ensure the continued viability of the program,” it has suggested.

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