The government today registered a $500-million grant agreement signed between Nepal and the US in the parliament for ratification.
The $500-million grant – a part of the $630-million ‘compact programme’ – is designed by the Millennium Challenge Corporation (MCC), an independent foreign aid agency of the US government, for Nepal. The interest free grant will be used to build energy and transport network in Nepal, paving the way for the country to attract more domestic and foreign investment, foster economic growth and reduce poverty, according to the MCC-Nepal.
The agreement registered in the parliament secretariat today states that the MCC will provide a grant of $459.5 million as ‘programme funding’ and another grant of $40.5 million as ‘compact CDF’. The government has committed to contributing $130 million to the programme.
The US government’s grant will be used to support two projects – the Electricity Transmission Project and the Road Maintenance Project – as lack of energy and transport infrastructure has been identified as two major binding constraints for rapid economic growth of the country.
On September 14, 2017, finance minister Gyanendra Bahadur Karki and acting MCC chief executive Jonathan Nash signed the agreement in Washington, DC. According to the agreement, the agreement must be ratified by the Federal Parliament before it comes into effect.
The MCC board of directors had selected Nepal for its compact programme in December 2014. Nepal was selected for the MCC programme ‘in recognition of the country’s efforts to establish rule of law and democratic institutions, and its strong performance on MCC’s policy scorecard’.
The $500-million grant – a part of the $630-million ‘compact programme’ – is designed by the Millennium Challenge Corporation (MCC), an independent foreign aid agency of the US government, for Nepal. The interest free grant will be used to build energy and transport network in Nepal, paving the way for the country to attract more domestic and foreign investment, foster economic growth and reduce poverty, according to the MCC-Nepal.
The agreement registered in the parliament secretariat today states that the MCC will provide a grant of $459.5 million as ‘programme funding’ and another grant of $40.5 million as ‘compact CDF’. The government has committed to contributing $130 million to the programme.
The US government’s grant will be used to support two projects – the Electricity Transmission Project and the Road Maintenance Project – as lack of energy and transport infrastructure has been identified as two major binding constraints for rapid economic growth of the country.
On September 14, 2017, finance minister Gyanendra Bahadur Karki and acting MCC chief executive Jonathan Nash signed the agreement in Washington, DC. According to the agreement, the agreement must be ratified by the Federal Parliament before it comes into effect.
The MCC board of directors had selected Nepal for its compact programme in December 2014. Nepal was selected for the MCC programme ‘in recognition of the country’s efforts to establish rule of law and democratic institutions, and its strong performance on MCC’s policy scorecard’.
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