‘Millennium Challenge Corporation’ (MCC) is to be continued in Nepal.
According to the US Embassy in Kathmandu, the decision of the US government was informed to the Nepal government which was confirmed by the Nepal government’s Ministry of Finance.
The MCC agreement worth US $500 million and the Nepalese government’s additional contribution of US $197 million will contribute to prosperity and regional energy promotion by building electricity transmission infrastructure and improving road networks.
On Friday, the MCC headquarters issued a statement stating that the review of the MCC portfolio’s foreign assistance was completed.
“This review aligns the MCC portfolio with the Trump administration’s America First foreign policy and MCC will continue to work to make America even safer, stronger, and more prosperous,” the MCC statement said.
The MCC also said that it will release more details in the coming weeks based on the MCC Board of Directors’ process and discussions with the US Congress and partner countries. The MCC statement indicated that most of its programs will continue.
“MCA-Nepal welcomes the decision by the US government to allow the continuation of the implementation of the MCC Nepal Compact under a special exemption in the context of the suspension of US foreign assistance,” the MCA-Nepal statement said.
Immediately after taking the Oath of Office in Washington D.C. on January 20, 2025 the US President Donald Trump announced that he would review all foreign aid provided by the US, saying that it should be consistent with the America First policy.
Initially, MCC signed an agreement (compact) between Nepal and the US to provide a grant of $500 million for Nepal’s transmission line, substation and road improvement projects.
It was mentioned that the Government of Nepal would contribute $130 million. Nepal has increased its contribution to $197 million after that amount proved insufficient for the MCC-funded project.
Since that amount was also insufficient for the transmission line project cost, the MCC board decided on January 2 to provide Nepal with an additional $50 million. It had also informed the US Congress about it.
