US to provide additional USD 50 million to  MCC projects in Nepal

Kathmandu - The US government has announced that it will provide an additional grant financing of 50 million US dollars (around 7 billion Nepali rupees) for the projects being implemented under  the Millennium Challenge Corporation  (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.     

On January 2, the Millennium Challenge Corporation (MCC) Board of Directors approved $50 million of additional funding for the Nepal Compact but was stopped to release after Donald Trump got elected as the President of the US for a second term and announced a review of all foreign assistance.

“The additional funding reaffirms our mutual dedication to ensuring the compact’s success in strengthening Nepal’s electricity grid and supporting long-term economic growth,” said MCC Vice President of Compact Operations Cameron Alford after approval of additional $50 million to the MCC–Nepal Compact.

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. 

 The MCC Nepal Compact continues that history through grant-based, debt-free assistance focused on high-impact infrastructure, the U.S. Embassy in Kathmandu said.