Kathmandu, Jan. 17: U.S. Embassy to Nepal has clarified that military component wasn't associated with the Millennium Challenge Compact (MCC).
Issuing a press release on Friday, the embassy said, "There is no military component to the MCC. In fact, U.S. law prohibits it."
MCC was founded as a new model for international development based on transparency and true partnership, said the Embassy.
According to the release, the U.S. government had started working with Nepal in 2012 toward development of an MCC compact at the request of Nepali leaders.
Nepal does not need to “join” or “sign up” for anything in order to participate in the MCC, it said.
"The $500 million is a grant, with no strings attached, no interest rates, and no hidden clauses," read the release. "All Nepal has to do is commit to spend the money, transparently, for the projects that have been agreed upon."
The embassy further cleared that Nepal itself had proposed and decided the projects that would be funded by MCC, based on the former's priorities.
MCC project tenders are open, transparent, and available to everyone and MCC’s model requires Nepal to hire Nepalis to lead implementation of the projects.
The project focuses purely on economic development by helping to build power lines and improve roads, the release clarified.
The embassy also said that parliamentary ratification of the project was obligatory, thereby ensuring transparency and opportunity for people of Nepal to understand the project.