KATHMANDU, Aug 30: The Millennium Challenge Corporation (MCC) Compact enters full-fledged implementation on Wednesday.
The Millennium Challenge Account Nepal (MCA-Nepal) has announced the launch of the Entry into Force (EIF), a key program component, on August 30. This marks the start of a five-year period for project completion.
As the EIF date is set for Wednesday, project work related to power transmission lines and road construction under the MCC Nepal Compact must be completed within the next five years.
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A spokesperson at the US Embassy in Kathmandu expressed the US government's enthusiasm for the progress of the Nepal-led MCC Compact, attributed to ongoing support from diverse stakeholders, successive governments, and political parties throughout MCC's engagement in Nepal.
"We are dedicated to collaborating with MCA-Nepal to ensure the successful implementation of the Compact. All involved parties are working diligently together to meet the Compact's goals within the specified timeline," the spokesperson stated.
MCA-Nepal reports that of the six preconditions identified for EIF implementation, five have been fulfilled. However, finalization of land acquisition for the EIF remains pending. The construction of electricity transmission lines requires a total of 1,471 hectares of land.
The EIF's original implementation date was June 30, 2020. Nonetheless, delays in parliamentary endorsement of the MCC and challenges in meeting project prerequisites resulted in the postponement of the EIF's commencement.
In September 2017, the Nepal Government's MCC signed a $500 million grant agreement with the US Government. Due to project implementation delays within the MCC, the government's financial liability has increased by $67 million.
