Nepal signs agreement for MCC grant assistance of USD 500 million

(Madhukar Adhikari) 

Washington DC - An agreement related to the Millennium Challenge Corporation (MCC) compact programme aimed at Nepal's economic development and eradication of poverty was signed amidst a function held in Washington DC on Thursday. 

MCC's Acting CEO, Jonathan Nash, and Nepal's Minister for Finance Gyanendra Bahadur Karki signed the agreement. 

On the occasion, United States Deputy Secretary of State, John J Sullivan, expressed joy that the US government has been able to lend support in upgrading the life standard of the people with low income rate through Nepal's economic development. 

Sullivan added further that the agreement has been successful in strengthening the bilateral relations between America and Nepal. He also expressed a belief that the agreement would help build the foundation for a strong economic growth and institutional structure in Nepal. 

Finance Minister Karki hailed the agreement as a 'milestone' in the backdrop of 70 years of diplomatic relations between Nepal and America. 

He added that the government remained committed in implementing the agreement alongside the institutional development of Nepal's democratic process. 

On behalf of Nepal Government, Minister Karki extended gratitude to the US government for its support in Nepal's sustainable development and poverty eradication. He added that the MCC's grant assistance will be important in Nepal's socio-economic transformation. 

As per the agreement, the US government will extend an economic assistance equivalent to USD 500 million with additional contribution of $ 130 million from Nepal. 

It is mandatory that the agreement for the development projects worth around $ 630 million will have to be completed within the next five years. The money will be spent for 213 kms of electric transmission lines and the expansion of road networks.