Both Prime Minister Oli and Minister for Foreign Affairs Pradeep Gyawali have been defending the bilateral pact and are for endorsing the agreement shortly after the winter session next week.

KATHMANDU, Dec 17: While commenting on the political report tabled Sunday by Nepal Communist Party (NCP) chairmen duo KP Oli and Pushpa Kamal Dahal at the party's ongoing standing committee meeting, some leaders have asked the government to clarify whether the grant from the Millennium Challenge Corporation (MCC) was provided to Nepal as part of the Indo-Pacific Strategy of the US government or not.

Claiming that the documents endorsed by the US government and the statements made by the US ministers state that $500 million grant for Nepal is a part of the US government's Indo-Pacific Strategy, leader Dev Gurung and Bhim Rawal have demanded that the government clear the confusions about the grant and its implementing modality.

“Documents endorsed by the US government and ministers' statements show the [MCC] grant is a part of the Indo-Pacific Strategy. That's why I demanded clarification on it,” Gurung told Republica.

Both Prime Minister Oli and Minister for Foreign Affairs Pradeep Gyawali have been defending the bilateral pact and are for endorsing the agreement shortly after the winter session next week.

Although the US and the government of Nepal signed the MCC agreement, the ruling NCP leaders are divided over the pact and its implemented modality. Some have been opposing the MCC grant saying it is a part of the Indo-Pacific Strategy and Indian consent is required to implement the projects funded under the MCC. Disagreeing with the content of the MCC deal, leaders and Gurung had earlier urged the party not to endorse the agreement from the parliament.

Due to differences in the NCP on whether to accept the MCC grant based on the current terms and conditions, the multi-million dollar investment grant provided by the US government meant for major infrastructure projects has fallen in limbo.

The 500-million dollar grant pledged by the US government was supposed to get parliamentary nod from the previous parliamentary session. A section of leaders like Gurung believe that the fund is allegedly tied to the IPS -- a strategy many in Nepal believe is devised to contain China and its Belt and Road Initiative (BRI).

Nepal plans to develop a 400-KV Nepal-India Butwal-Gorakhpur electricity transmission line and upgrade a few roads with the MCC grant.

The dissenting NCP lawmakers argue that accepting the grant will be tantamount to joining the US-led military alliance and abandoning Nepal's long-held foreign policy based on non-alignment and Panchsheel. They have argued that this issue needs further discussion within the party to arrive at a consensus first before endorsing it through parliament.

Without elaborating, a political report tabled at the ongoing standing committee meeting of the NCP has hinted at possible confrontation in the Asia-Pacific region and in Nepal between the US and China due to their conflicting strategies.

 
• NCP_standing_committee
 
• MCC_grants