MCC ratification deadline ends today

KATHMANDU, JUNE 29

A day before the deadline for parliamentary ratification of the Millennium Challenge Corporation agreement ends, the Embassy of United States in Nepal today issued a press release stating that delay in ratification of MCC’s Nepal compact had denied benefits of more jobs and increased economic growth for nearly 23 million Nepalis.

Accepting this grant is Nepal’s choice, but the availability of the funding is not open-ended, the US embassy said, adding that tangible, near-term steps in Nepal were necessary to ensure the continued viability of the programme.

“The United States is aware that Nepal’s Parliament has not yet ratified the MCC’s Nepal compact. Ratification is the next step needed to proceed with the $500 million grant, which the two countries signed in September 2017 and which Nepal committed to ratifying by September 2019,” US Embassy said in its release.

US Embassy said the Government of Nepal and MCC had worked together continuously since 2012 under multiple governments, representing all major political parties, to develop the compact programme.

“This compact will build electric transmission infrastructure and perform road maintenance activities and directly benefit 23 million Nepalis.

The projects funded by the compact are priorities identified by Nepal during the nearly three years of project design to benefit the people of Nepal,” the embassy added.

MCC is a committed partner having successfully partnered with nearly 30 countries worldwide on 37 grant agreements of several hundred million dollars, totaling $13 billion.

These grants have helped lift millions of people from poverty by catalysing investment and economic growth and have supported partner countries’ sovereignty, the US Embassy stated.

MCC’s transparency as a development partner is also recognised globally, and this year MCC was once again ranked the top bilateral donor in the Aid Transparency Index, the United States Embassy added.

The United States and Nepal share a 73-year partnership working together in many sectors.

A version of this article appears in e-paper on June 30, 2020, of The Himalayan Times.

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