Prime Minister Pushpa Kamal Dahal has said that Millennium Challenge Corporation (MCC) funded projects have paved the way for new opportunities in areas of economic cooperation between Nepal and the US.
He also expressed his hopes of enhancing trade connectivity for Nepal throughout Asia, and that the effective implementation of the compact’s projects would contribute significantly to Nepal's economic development and poverty reduction. He appreciated the US Government for continued cooperation and assistance. Speaking at a program to celebrate the launch of the MCC-Nepal compact, PM Dahal and senior leaders expressed their full-commitment to expedite the implementation of MCC projects.
The five-year program was launched on 30 Aug 2023, with an Entry into Force (EIF) letter exchange between Finance Minister Prakash Sharan Mahat and MCC Vice-president-Compact Operations Cameron Alford. The project will have to be completed within the next four years and six months.
EIF is an important milestone for MCC compacts as it marks the fulfillment of necessary conditions and sufficient preparations to ensure successful completion of compact projects within a five-year timeline. Minister Mahat expressed his belief that the MCC Nepal Compact’s projects will support Nepal’s growth and benefit the people of Nepal through better roads and more reliable electricity.
In her remarks, MCC CEO Albright said: “We worked with the Government of Nepal to set ambitious goals with this program in order to achieve great things with the people of Nepal. We stand ready to be a steadfast partner and have full confidence in the leadership of the Government of Nepal and their implementing agency, MCA-Nepal.”
“We are ready to face the inevitable challenges together and deliver a successful program,” US Ambassador Dean R Thompson added that “the MCC-Nepal Compact is another in a long line of important US initiatives supporting economic growth for the Nepali people and marks yet another significant milestone in the 76-year long friendship between Nepal and the United States.”
During her three-day visit, MCC CEO Albright met with key government officials and stakeholders in the implementation of the Compact, attended a tree-planting ceremony to emphasize the importance MCC places on environmental protection and climate preservation, and observed ongoing work with the Department of Roads in training engineers to use climate-smart, sustainable technology to create a safer transportation network that is easier to maintain and better for the environment.
Highlighting the Compact’s aim to foster inclusive economic growth for the people of Nepal, MCC CEO Albright also met with women executives who shared with her their experiences, work, and hopes for a more prosperous Nepal.
The GoN and MCC signed the MCC Nepal Compact on 14 Sept 2017 for two projects, the Electricity Transmission Project and the Road Maintenance Project, which will result in more reliable electricity and more cost-effective transportation in Nepal.
Alice Albright, chief executive officer of the Millennium Challenge Corporation, is confident that two vital projects—a transmission line’s construction and road upgrades—under MCC Nepal Compact will be completed within the five-year deadline. Initiated in August, just four years and 11 months remain to meet this goal.
In an exclusive conversation with a select group of journalists, Albright highlighted that the top leaders of Nepal’s three major political parties—CPN (Maoist Center), Nepali Congress, and CPN-UML—stand firmly in favor of these projects’ execution. After meetings with Prime Minister Pushpa Kamal Dahal, Nepali Congress President Sher Bahadur Deuba, and CPN-UML Chairman KP Sharma Oli, she said that she received their unequivocal commitment to removing any obstacles that might hinder the progress of these projects.
During the press conference, senior officials from MCA-Nepal reported that they have not encountered any major challenges in the field during the project’s implementation.
Highlights
- Investment $500m from the United Nations and $197 from Nepal
- Electricity transmission project: Up to 66 percent Nepal homes and businesses will gain better access to clean Nepali hydropower
- Road maintenance project: Up to 130 km cost-effective, safer, climate sustainable roads along national highways
- Introduction of innovative, sustainable full depth reclamation and superpave asphalt technology for road maintenance
