KATHMANDU, Nov 20: The Government of Nepal and the US Government’s Millennium Challenge Corporation (MCC) have announced an additional US $50 million (around Rs 7 billion) in grant financing for the MCC Nepal Compact.
With the added amount of grant, the total available funding under the Compact has reached $747 million (Rs 106 billion), with $550 million from the USA and $197 million from the Government of Nepal.
MCC board approves $500 million US grant to Nepal
Earlier on January 2, 2025, the MCC board of directors approved additional funding of $50 million for the Nepal-based projects under the program. These additional resources will help meet the Compact’s key objectives of completing priority transmission infrastructure, strengthening Nepal’s energy system, and enabling regional energy trade, said the US Embassy in a statement issued on Wednesday.
The Compact is expected to support international connectivity by improving grid reliability and market access, and promote US excellence and best practices in energy infrastructure. The Compact also expands opportunities for US technology and companies to enter the Nepali market.
“This financial support reflects the enduring partnership between the United States and Nepal. For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity. The MCC Nepal Agreement continues that history through debt-free, grant-based assistance focused on high-impact infrastructure,” reads the statement.
