Parliament ratifies MCC

What does the 12-point Interpretative Declaration say?

Published On: February 28, 2022 12:06 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 28: The ruling political parties announced a 12-point ‘Interpretative Declaration’ before the ratification of the much-debated Millennium Challenge Corporation (MCC) compact agreement through parliament in a bid to clarify to all concerned that this is purely focused on economic cooperation and development of physical infrastructures in Nepal.

In the Interpretive Declaration, the ruling parties stated that the MCC compact, upon its endorsement, would not be regarded as a strategic agreement or a part of the Indo-Pacific Strategy of the US government. The Interpretative Declaration seeks to clarify that the auditing of the project would be conducted by the Office of the Auditor General; the intellectual property gained from the project would be of Nepal; Nepal’s constitution will prevail over the MCC grant agreement and the MCC-funded projects would be directed as per Nepal's constitution.

The Interpretative Declaration was made public after a meeting of the ruling parties was held to discuss MCC at the Prime Minister's Official Residence in Baluwatar.

In relation to section 2.7, section 5.2 (b.3), section 5.2 (b.4) of the MCC compact agreement, a section of political leaders in Nepal has the understanding that these provisions are effective only on the use of the grant. Similarly, other provisions would not make Nepal mandatory to abide by the existing or the future US laws or policies in any purpose except for the use of MCC grant.

Similarly, in regard to section 3.2 (b) of the MCC compact, it has been made clear that the activities to be carried out with the help of the MCC compact Nepal Development Committee shall be guided by the laws of Nepal.

The MCC will not have the ownership of the intellectual property right while Nepal will own the entire intellectual property rights and Nepal will fully utilize it, it has been stated in the Interpretive Declaration.

As far as Section 3.5 of the MCC Compact Agreement is considered, the Interpretive Declaration says that the implementation papers will be brought into practice within the ambit of the compact. Also, the activities and funds of the MCA will be audited by Nepal’s Office of the Auditor General.

The descriptive note also states that the Constitution of Nepal shall prevail over the compact, which is stated in the clause 7.1 of the compact, and implementation of the program and project will be carried out as per Nepal’s laws and compact. 

All the movable and immovable properties and land plots of the projects will be owned by the Government of Nepal and its line agencies.


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