The Millennium Challenge Account -Nepal (MCA-Nepal) has appealed for timely ratification of the Millennium Challenge Corporation (MCC) Compact by the Federal Parliament, as opposition has been growing from the ruling party members against the MCC.
Organising a press conference to brief media today, MCA-Nepal has also clarified that a condition of ratification of the agreement for the grant of $500 million from the MCC Compact by the Nepali Parliament is a 'standard norm' used by the MCC to ensure that projects implemented under their support do not face any problems later due to other laws. In addition to the US grant, the government will chip in $130 million for implementation of the Compact.
“The Compact has outlined six Conditions Precedent (CPs) to be achieved as necessary prerequisites before the ‘Entry Into Force’ (EiF), set for June 30,” executive director of MCA-Nepal Khadga Bahadur Bisht said, adding that out of the six, four – Designating Electricity Transmission Project as a national pride project, signing of the project implementation agreement, drafting of Electricity Regulatory Commission Act and forming the commission, agreement between Nepal and India for cross-border transmission line (Butwal-Gorakhpur) – have already been met.
The EiF by June 30 is considered to be very important for Nepal because if the programme enters into force, all projects must be completed within five years. MCA-Nepal – an agency formed by the government to implement and manage programmes financed by the MCC – says that all compact-related works that are incomplete at the end of the five-year timeline will not be funded by MCC or unutilised funds will return to the US.
“The MCC needs to be ratified by the Parliament before the access to site – the two major remaining conditions – that will be required to ensure Nepal can access the funds allocated to implement the programme on time,” Bisht said, adding that the MCC- Nepal programme has identified projects under two headings – high-voltage transmission lines and road maintenance – which need to be completed by June 29, 2025.
The project will construct 312-km-long 400 kVA high-voltage transmission lines and three high capacity substations, including building 856 transmission line towers across the alignment, according to the MCA-Nepal. The transmission line will pass through 30 municipalities of 10 districts. The locations for three substations are in Ratmate, Damauli and New Butwal.
Likewise, the programme will build different road projects with a total length of 100 kilometres.
The projects will be implemented through the use of cutting-edge technology from United States.
The Road Maintenance Project aims to enhance current practices in the maintenance of Nepal’s strategic roads network and will provide technical assistance to the Department of Roads (DoR) and Roads Board Nepal. Maintenance interventions will include pavement improvement techniques and safety enhancement features. New pavement improvement technology adopted is Full Depth Recycling (FDR) and Superpave asphalt concrete which follows the principle of recycling existing pavement material.
Organising a press conference to brief media today, Bisht said that MCA-Nepal is in the final stage of preparatory works required for the implementation of its projects that aim to increase the availability and reliability of electricity, maintain road quality and facilitate power trade between Nepal and the region to help encourage investments. But, Bisht further said, the Parliamentarians or anyone has the right to raise questions regarding the project without trying to obstruct the project on any condition as it is not good for its timely implementation. “We will like to assure that MCA-Nepal is ready to hold necessary discussions regarding the project implementation with all the concerned stakeholders,” he said, adding that the condition is in line with the standard format of the MCC compacts. “Seventeen other countries, where compact is implemented also ratify the agreement.”
As the government is preparing to table the agreement for ratification in the ongoing session of Parliament, some ruling Nepal Communist Party (NCP) leaders have started criticising the MCC Compact, particularly the condition of the ratification, and also the provision that Nepal cannot audit the project. Bisht, however, said that there is not any clause in the agreement that bars auditing of the projects under this compact by the Office of Auditor General (OAG).
Speaking on the occasion, alternative board member of MCA-Nepal Gyanendra Lal Pradhan said that the Federal Parliament should ratify the project and pave the way to take forward the project as soon as possible. “According to the understanding of Vienna Convention, any development partner has the right to ‘change in law’ protection for any future uncertainty,” her said, adding, “If any political party’s leader obstructs the project implementation, we should stand against them.”
Organising a press conference to brief media today, MCA-Nepal has also clarified that a condition of ratification of the agreement for the grant of $500 million from the MCC Compact by the Nepali Parliament is a 'standard norm' used by the MCC to ensure that projects implemented under their support do not face any problems later due to other laws. In addition to the US grant, the government will chip in $130 million for implementation of the Compact.
“The Compact has outlined six Conditions Precedent (CPs) to be achieved as necessary prerequisites before the ‘Entry Into Force’ (EiF), set for June 30,” executive director of MCA-Nepal Khadga Bahadur Bisht said, adding that out of the six, four – Designating Electricity Transmission Project as a national pride project, signing of the project implementation agreement, drafting of Electricity Regulatory Commission Act and forming the commission, agreement between Nepal and India for cross-border transmission line (Butwal-Gorakhpur) – have already been met.
The EiF by June 30 is considered to be very important for Nepal because if the programme enters into force, all projects must be completed within five years. MCA-Nepal – an agency formed by the government to implement and manage programmes financed by the MCC – says that all compact-related works that are incomplete at the end of the five-year timeline will not be funded by MCC or unutilised funds will return to the US.
“The MCC needs to be ratified by the Parliament before the access to site – the two major remaining conditions – that will be required to ensure Nepal can access the funds allocated to implement the programme on time,” Bisht said, adding that the MCC- Nepal programme has identified projects under two headings – high-voltage transmission lines and road maintenance – which need to be completed by June 29, 2025.
The project will construct 312-km-long 400 kVA high-voltage transmission lines and three high capacity substations, including building 856 transmission line towers across the alignment, according to the MCA-Nepal. The transmission line will pass through 30 municipalities of 10 districts. The locations for three substations are in Ratmate, Damauli and New Butwal.
Likewise, the programme will build different road projects with a total length of 100 kilometres.
The projects will be implemented through the use of cutting-edge technology from United States.
The Road Maintenance Project aims to enhance current practices in the maintenance of Nepal’s strategic roads network and will provide technical assistance to the Department of Roads (DoR) and Roads Board Nepal. Maintenance interventions will include pavement improvement techniques and safety enhancement features. New pavement improvement technology adopted is Full Depth Recycling (FDR) and Superpave asphalt concrete which follows the principle of recycling existing pavement material.
Organising a press conference to brief media today, Bisht said that MCA-Nepal is in the final stage of preparatory works required for the implementation of its projects that aim to increase the availability and reliability of electricity, maintain road quality and facilitate power trade between Nepal and the region to help encourage investments. But, Bisht further said, the Parliamentarians or anyone has the right to raise questions regarding the project without trying to obstruct the project on any condition as it is not good for its timely implementation. “We will like to assure that MCA-Nepal is ready to hold necessary discussions regarding the project implementation with all the concerned stakeholders,” he said, adding that the condition is in line with the standard format of the MCC compacts. “Seventeen other countries, where compact is implemented also ratify the agreement.”
As the government is preparing to table the agreement for ratification in the ongoing session of Parliament, some ruling Nepal Communist Party (NCP) leaders have started criticising the MCC Compact, particularly the condition of the ratification, and also the provision that Nepal cannot audit the project. Bisht, however, said that there is not any clause in the agreement that bars auditing of the projects under this compact by the Office of Auditor General (OAG).
Speaking on the occasion, alternative board member of MCA-Nepal Gyanendra Lal Pradhan said that the Federal Parliament should ratify the project and pave the way to take forward the project as soon as possible. “According to the understanding of Vienna Convention, any development partner has the right to ‘change in law’ protection for any future uncertainty,” her said, adding, “If any political party’s leader obstructs the project implementation, we should stand against them.”
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