Anti-MCC protests resurface

Ahead of implementation of Millennium Challenge Corporation which was endorsed by Parliament, some fringe communist parties have begun criticizing the agreement.

The meeting of the board of directors of the Millennium Challenge Account Nepal Development Committee (MCA Nepal) held on August 16 decided to implement the MCC agreement. Senior MCC Officials have arrived in Kathmandu to witness the formal implementation of the MCC-Nepal compact.

Madhav Kumar Nepal, a former Prime Minister and Chairman of CPN (Unified Socialist) - a ruling partner, has called for more discussion on the 'interpretative declaration' of the MCC.

Speaking at the meeting of the International Relations and Tourism Committee of the House of Representatives on Monday, Nepal said concerns that have been raised regarding the MCC must be addressed. "Issues related to nationality and other significant matters have come to the forefront. Similarly, concerns have been voiced on the implementation of the interpretative declaration of the MCC," Nepal said.

He said Nepal should move ahead in accordance with a policy of non-alignment and adherence to the principles of the UN Charter.

Similarly, Jhala Nath Khanal, another former Prime Minister and senior leader of the Unified Socialist, termed MCC agreement an unfortunate development for Nepal. "The MCC agreement is not in Nepal's best interest, and some of our leaders have inadvertently damaged the country's reputation,” Khanal said.

Addressing a separate event in Kathmandu, Khanal said he had no information about parliament. “I knew it was signed in agreement after it was tabled in parliament. I raised serious concerns about the agreement when it was presented for endorsement.”

Similarly, Maoist Center General Secretary Dev Prasad Gurung said although parliament has attached an interpretative declaration to the MCC, the US government hasn't said anything about the agreement. "Since the US hasn't said anything about the declaration, this process cannot conclude," he added.

The official statement of MCC released after the MCC agreement was ratified by the parliament doesn't mention anything about the interpretative declaration. "The decision to ratify the Nepal Compact has always rested with the Government of Nepal as a sovereign democratic nation," the statement said.

In the meantime, the CPN (Maoist) led by Mohan Baidya has declared its intent to prevent the implementation of the MCC Compact.

CP Gajurel, a leader of CPN (Maoist), said that his party would organize protests in various parts of the country to oppose the MCC's implementation. He said that although the MCC agreement has been ratified by parliament, it doesn’t mean that it cannot be reconsidered. "While the parliament approved the MCC, it doesn't mean that it cannot be reversed. The government retains the authority to distance itself from the MCC. The authority rests with the people of Nepal," he added.

Gajurel reaffirmed his party's commitment to continue protests until the MCC agreement is rescinded.

MThe government is using the $500 million MCC Compact to upgrade a 77-kilometer segment of the East-West Highway and the construction of a 315-kilometer 400kV transmission line along with three substations.

The parliament ratified the MCC agreement on February 27, 2022.