MCC Nepal Compact: Additional 50 million USD funding confirmed

Kathmandu, Nov 19: The Government of Nepal and Millennium Challenge Corporation (MCC) under the US Government have announced an additional grant financing of 50 million US dollars (around 7 billion rupees) for the MCC Nepal Compact.     

With this announcement, the total amount available for Nepal under the Compact has reached 747 million US dollars (around 106 billion rupees), of which 550 million dollars will be provided by the US Government and the remaining 197 million dollars by the Government of Nepal.     

This additional funding is expected to help deliver the Compact’s core objectives: completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling increased regional power trade.     

By improving grid reliability and market access, the Compact is expected to support international connectivity and promote American excellence and best practices in energy infrastructure. The Compact also expands opportunities for U.S. companies and technology to enter Nepal’s market, the US Embassy in Kathmandu stated.     

This financial aid from the US government reflects the sustainable partnership between the United States and Nepal. It may be noted that for decades, the two countries have established partnership in the efforts to advance economic growth, energy security, and mutual prosperity. According to the U.S. Embassy in Kathmandu, the MCC Nepal Compact continues that history through grant-based, debt-free assistance focused on high-impact infrastructure, it is said.(RSS)