KATHMANDU, Aug 31: The Government of Nepal (GoN) and the Millennium Challenge Corporation (MCC) on Wednesday officially launched the MCC Nepal Compact Program, a program jointly funded by the GoN and the US government.
The milestone follows an agreement between GoN and MCC that substantial progress on project preparation has been achieved.
Finance Minister Prakash Sharan Mahat and MCC Vice President (Compact Operations) Cameron Alford exchanged the letter on the Entry into Force (EIF) of the Nepal Compact before key stakeholders at a gathering organized at the Ministry of Finance. EIF is an important milestone for MCC Compact as it marks the fulfillment of necessary conditions and preparation to ensure successful completion of the Compact projects within a five-year timeline.
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Speaking at the program, Finance Minister Mahat said the initiative is a milestone to implement the Electricity Transmission Project – a designated National Pride Project – and the Road Maintenance Project, which will invest in Nepal’s strategic road network.” He expressed his belief that the MCC Nepal Compact will support Nepal’s growth and will benefit the people of Nepal from better roads and more reliable electricity.
US Ambassador to Nepal Dean Thompson remarked that the US and Nepal have shared a strong friendship for more than 75 years. “An exciting milestone in our friendship is the MCC-Nepal Compact, which will boost the prosperity of Nepal for the long term, provide good jobs, and improve access to electricity and transportation for Nepalis. We look forward to seeing the incredible impact the Compact will have in advancing economic growth in Nepal,” he said.
MCC Vice President Cameron Alford expressed his happiness on partnering with Nepal on the projects. “Together, we will advance economic growth by creating business opportunities for Nepalis, improving road maintenance on the strategic road network, and finding innovative ways to improve the reliability of electricity all while protecting the environment.”
Khadga Bahadur Bisht, executive director at MCA-Nepal, expressed his hope that the projects will be successfully implemented within the set budget and time frame as per the direction from the Government of Nepal and with MCC’s cooperation.
The GoN and MCC signed the MCC Nepal Compact on 14 September 2017 for two projects--the Electricity Transmission Project and the Road Maintenance Project, which are expected to increase the reliability of electricity supply and lower the cost of transportation in Nepal.
The program was co-funded by the US Government’s grant of USD 500 million and the GoN’s contribution of USD 197 million.
