MCC Grant Agreement

Ratification will mean more jobs for Nepali people, a reliable supply of electricity and lower transportation costs: US Embassy

Published On: February 27, 2022 11:04 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 27: The US Embassy in Kathmandu has said that the decision of parliament to ratify the Millennium Challenge Corporation (MCC) grant agreement will mean more jobs for Nepali people, a reliable supply of electricity and lower transportation costs in Nepal. 

Issuing a press statement shortly after the House of Representatives (HoR) ratified the MCC grant agreement on Sunday evening, the US Embassy in Kathmandu also clarified that the decision whether to ratify the $500 million-dollar MCC Nepal Compact always rested with the Government of Nepal as a sovereign democratic nation. "Today's decision by Parliament to follow through on its signed commitment and ratify the compact will mean more jobs for the Nepali people, a reliable supply of electricity, and lower transportation costs," the Embassy said in the statement.

The statement added that in the nearly 20 years since its inception, MCC compacts have helped alleviate poverty around the world by forming partnerships with developing countries who are committed to economic freedom, investing in their citizens, and good governance, including promoting democratic principles and combating corruption.

"The Government of Nepal signed the MCC agreement in 2017 after determining its goals to modernize Nepal’s energy and transportation sectors with the hope of helping more than 23 million Nepalis. The Nepali government will now be able to continue to work towards implementing the five-year program," the statement further said.

The US Embassy in Kathmandu said that the US has always stood with Nepal through monumental changes and supported the country with development aid, disaster response and preparedness assistance, health and education programs and more in the last 75 years of diplomatic relations between the two countries. "The United States’ relationship with Nepal is broader than one agreement and we will continue to support the country and its democratic values and long-term economic prosperity," the statement added.

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