US Government to Continue Millennium Challenge Corporation Project in Nepal
US Government Reaffirms Commitment to Millennium Challenge Corporation Project in Nepal
Kathmandu, July 28 — In a significant development for Nepal’s infrastructure and energy sectors, the US Government has confirmed its commitment to the Millennium Challenge Corporation (MCC) project, despite recent shifts in foreign aid policy under the Trump administration. The US Embassy in Kathmandu announced on Monday that the MCC Nepal Compact will continue, a decision that promises to bolster regional prosperity and energy security.
In a press release, the embassy stated, “The US government review of foreign assistance has recommended to continue implementation of the Millennium Challenge Corporation (MCC) Nepal Compact, and we have notified the government of Nepal of this decision.” This announcement comes on the heels of a letter sent to the Nepalese Finance Ministry on July 24, outlining the continuation of MCC projects.
The MCC Compact, valued at USD 500 million, is a collaborative effort that includes an additional USD 197 million contribution from the Nepalese government. The project aims to enhance electricity transmission infrastructure and improve the road network, critical components for fostering economic growth and stability in the region.
The MCC initiatives faced a temporary suspension following an executive order from the US President on January 20. However, following a thorough review, the suspension was lifted, allowing the projects to move forward as planned.
This renewed commitment from the US government is expected to have a positive impact on Nepal’s development trajectory, providing much-needed resources for infrastructure improvements that are vital for the country’s economic future.
As Nepal continues to navigate the complexities of international aid and development, the MCC project stands as a beacon of hope for enhanced energy security and infrastructure resilience.
For more updates on international relations and development projects, stay tuned.
