At a time when Prime Minister Sher Bahadur Deuba has been intensifying efforts to forge a common ground on the Millennium Challenge Corporation (MCC), the United States has given the government of Nepal a deadline of February 28 to endorse the compact from the Parliament.
In response to a commitment letter sent by Prime Minister Sher Bahadur Deuba and CPN (Maoist Centre) Chairman Pushpa Kamal Dahal on September 11, requesting for four to five months to secure the required majority in the House of Representatives for the ratification of the compact, the United States set the deadline by sending a letter to the government of Nepal on February 3, reminding it of the written commitment made by Deuba and Dahal.
In the commitment letter, the duo said that they would discuss clarifications received from the MCC with all the coalition partners and party members, use the resource of Nepal to communicate publicly with the Nepali people and to dispel misunderstandings and apprehensions about the compact, hold a joint conference with leaders of the coalition partners to demonstrate government’s positive views on the MCC ratification, disseminate accurate information about the compact through state media, encourage MCA Nepal for the implementation of the MCC compact and to jointly request Speaker to table the MCC compact in the Parliament.
“Without action on your part by February 28, the MCC board will discuss next steps as its March 22 meeting, including whether to continue with the compact,” Fatema Z Sumar, vice president at MCC Compact Operations, said in the letter, adding, “Absent ratification, it is within the board’s authority to discontinue Nepal’s eligibility to receive the $500 compact grant with the grant from the United States. Such a decision would end MCC’s partnership with Nepal.”
She urged Prime Minister Deuba and Dahal to make a decision on the parliamentary ratification of the MCC right away.
“The MCC Board of Directors held a meeting on December 14, 2021 and reviewed the status of the compact with Nepal and discussed your September 11 letter. The MCC Board noted your commitment to work to ratify the compact in four to five months from the date of the letter,” the letter read, adding, “The Board acknowledged your plan to increase public awareness of the compact. MCC therefore requests that you continue to work with parliamentarians and coalition partners to ratify the compact by the timeline indicated in your letter, no later than February 28, 2022.”
"MCC believes that continuing with the compact is Nepal's sovereign choice. We have worked together with the government of Nepal for close to decade to move our partnership forward for the people of Nepal. We stand ready to help the people of Nepal reduce poverty through inclusive and sustainable economic growth if Nepal's leaders choose to do so," the letter further read. "We value the partnership with the government of Nepal and look forward to working together to create economic opportunities in Nepal for its people in the coming years."
