The clarifications come amid concerns raised by a section of ruling party leaders, including Prime Minister Pushpa Kamal Dahal, about whether the US government would accept the 12-point explanatory note as a part of the MCC agreement.

KATHMANDU, Aug 30: Amid concerns raised by a section of ruling party leaders, including Prime Minister Pushpa Kamal Dahal, about whether the US government would accept the 12-point explanatory note as a part of the MCC agreement, the US government has clarified that the explanatory note will indeed be included in the MCC grant agreement.

The US Embassy in Kathmandu on Tuesday also clarified that the Constitution of Nepal will hold precedence over the MCC Nepal Compact. A spokesperson at the US Embassy in Kathmandu stated, "The MCC acknowledged the receipt of the interpretive declaration last year. We agree with the interpretative declaration and consider it to be consistent with our understanding of the compact's terms, including the prevalence of Nepal's Constitution over the MCC Nepal Compact."

The US government's clarification comes on the eve of the official commencement of the MCC Nepal Compact. MCC Vice President of Compact Operations, Cameron Alford, has already arrived in Nepal to participate in the event on Wednesday.

The House of Representatives ratified the MCC Nepal Compact, a $500 million grant from the US designated for power and road infrastructure projects, on February 27, 2022 despite substantial controversy and protests. This marked the largest American financial commitment to Nepal till date. The agreement, inked over four years earlier, encountered delays due to allegations that it undermined Nepal's sovereignty.

Ultimately, the agreement was approved alongside a 12-point explanatory note, affirming its lack of military or security components and its detachment from the US Indo-Pacific strategy. It was clarified that Nepal retains the option to withdraw if the US contravenes this understanding.

The interpretative declaration featuring the 12 points, which the Cabinet chose to append to the Millennium Challenge Corporation (MCC) Compact, additionally stipulates that Nepal's Constitution shall supersede the Compact and associated agreements. The declaration underscores Nepal's non-involvement in any American strategy, military or security alliances, including the Indo-Pacific Strategy, as a party to the Compact.

While addressing a mass rally organized by the Socialist Front in Butwal on Tuesday, Prime Minister Dahal announced that he will inquire with US officials regarding the inclusion of the 12-point explanatory declaration within the MCC agreement. The prime minister voiced doubts about whether the 12-point explanatory note, which was appended to the MCC grant agreement, would be acknowledged by the US side.

Prime Minister Dahal, also the chairman of CPN (Maoist Center), asserted that he had spared no effort to ensure that the MCC grant agreement aligns with Nepal's best interests. "My assertion is that I am striving to safeguard Nepal's national interests, independence, and sovereignty, just as I did during the People's War," he conveyed.

Dahal noted that the 12-point explanatory declaration, unanimously passed by the Parliament, belongs to the House. He remarked, "Uncertainty surrounds its implementation," alluding to the reservations expressed by CPN (Maoist) Chairman Netra Bikram Chand, CPN (Unified Socialist) Chairman Madhav Kumar Nepal, and other leaders of the Social Front during the program.

"A senior MCC official is arriving in Nepal. In my capacity as the prime minister, I will have a direct conversation with him. I will ask him straightforwardly if the 12-point explanatory note will be incorporated. Subsequent steps will hinge on consultations within the Socialist Front," added the prime minister.

Also addressing the same program, Chairman Nepal of the ruling Unified Socialist party emphasized that Nepal cannot endorse the MCC project if it is aligned with the US’ Indo-Pacific Strategy. He maintained that acceptance of the MCC compact agreement hinges on the US side's willingness to integrate the 12-point explanatory note into the agreement.

 
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