MCC Enters Implementaion

After eight years in the making, eleven successive governments and clearance of seemingly insurmountable hurdle with the ratification by the parliament in February 2022, finally, the Millennium Challenge Corporation (MCC) project has come into implementation. This is no small achievement, of course, and bodes well for Nepal’s power transmission infrastructure, road connectivity and eventually, economic development and prosperity. 

Nepal and the MCC have signed the MCC Nepal Compact for two projects – electricity transmission and the road maintenance. The former will build 312 km of 400kV electricity transmission lines and three substations and provide technical assistance for the power sector. The latter, on the other hand, aims to enhance current practices in the maintenance of Nepal’s strategic road networks and will provide technical assistance to the Department of Roads and Roads Board Nepal. The idea is to increase the reliability as well as availability of electricity and lower the cost of transportation in Nepal. Besides, we expect the project will lower the road accidents and travel time with the construction of quality roads.

Because it aims to develop the country’s infrastructure underpinning the generation of electricity as well as the construction of strategic roads, the project has raised great economic hopes. Its importance is beyond measure, for it has come at a time when the global economy is in the doldrums. Once the US$697 project meets its goal, we’ll be able to address the current problems in power transmission and distribution system. It will also facilitate export the surplus hydroelectric power. Notably, during the recent India visit of Prime Minister Pushpa Kamal Dahal Prachanda, the southern neighbour had agreed to purchase 10,000 megawatts of electricity from Nepal in coming 10 years. 

For all the benefits we are going to reap, some concerns remain. First, the huge nature of the project means that great many trees will have to be felled to clear the path for construction works. At a time when cutting of trees is linked to soil destabilisation and temperature rise, this may raise some environmental concerns. So the project should proceed with the timely completion of the Environmental Impact Assessment (EIA) report. Care should be taken to do least possible harm to the country's valuable green cover. 

Second, will the impacted community or people be able to benefit from the project on par with their expectations? We believe that those who have given their lands for the project must be adequately compensated. The deal must be inked in a way that will sort out the issue once and for all. Also, since the transmission line project will pass through 30 municipalities of 10 districts, it should benefit the local people there. One way to do this is to ensure their participation and involvement in the project work. This means a lot to them. Opening schools, providing health facilities and giving employment will create a sense of ownership to the project.

There is no doubt that the project is in the interest of all, and supporting it with whatever way one can is everyone’s responsibility. In a good sign, some opposing views and debates seen in the past have fizzled out after the political consensus evident in the parliamentary ratification. This crucial infrastructure project must prove to be a milestone in Nepal's development endeavours.