The ruling Nepal Communist Party (NCP) is backing off from its commitment and agreement to start implementation of the mega US grant project, and seeking clarification from the US on relations between Millennium Challenge Corporation (MCC) and Indo-Pacific Strategy (IPS).
Replying the members at the standing committee meeting co-chair of Nepal Communist Party (NCP) Pushpa Kamal Dahal today said that Nepal could accept US assistance under MCC compact programme after clearance from its relation with IPS, which some of the ruling party members think a military alliance to counter China – the northern neighbour – and Beijing’s Belt and Road Initiative (BRI).
Dahal said that Nepal could accept the MCC only after considering the strings attached to the programme, according to the NCP (NCP) standing committee member Beduram Bhusal. “We have to see how far the conditions of the MCC programme suit Nepal’s national interests,” Bhusal quoted Dahal as telling the committee. “Dahal said while Nepal should continue to enjoy its old and cordial relations with the US, it could not be part of any military alliance in the guise of any programme.”
Some of the standing committee members told the meeting that MCC is part of the IPS and hence Nepal should not accept it. They put pressure on the leadership and the government seeking clarity from the US on MCC, and its relations to IPS. “The IPS has been a subject of speculation among the political and diplomatic circles ever since foreign minister Pradeep Kumar Gyawali visited Washington last December,” they claimed.
Nepal became eligible for the MCC – announced in 2002 by US President George W Bush – in 2011 and signed the agreement in 2017. Though, the MCC compact was signed by Nepali Congress (NC) government of which the former Maoist party was a coalition partner, the ruling party – unified between former Maoist party and fomer CPN(UML) party – has been sharply divided about endorsing the US grant from the Parliament.
The implementation of MCC will start once the Nepal’s Parliament ratifies it. The MCC, however, did not pass during the previous House session because of the reluctance of then House Speaker Krishna Bahadur Mahara, though foreign minister Pradeep Kumar Gyawali assurance that MCC was not part of IPS. The government spokesperson and minister for Communication and Information Technology Gokul Baskota has – during his regular weekly press briefing – also claimed that the MCC will be ratified by the Parliament’s winter session that started yesterday. The opposing ruling party leaders did not believe even the Prime Minister KP Sharma Oli, who has also claimed that the MCC will be endorsed during the winter session of Parliament.
The US has announced that it will provide assistance of $500 million in grants to Nepal under the MCC programme over the next five years. Nepal has to invest more than Rs 13 billion – as a matching fund – for the programme. The grant will be used to construct the toad and transmission lines, for better connectivity. Nepal plans to use the grant to develop the 400-KV Nepal-India Butwal-Gorakhpur electricity transmission line and to upgrade some roads.
The US officials have repeatedly termed MCC an important initiative under the Washington-led IPS. The US officials including US envoy to Nepal Randy Berry have also time and again clarified that IPS is just a US ‘policy’ and it does not require or demand membership from anyone. But opposing leaders have been claiming that the MCC is part of the US military strategy IPS to counter China and Beijing’s influence.
The leaders, who are opposing the MCC, are also claiming that the provision – in the agreement – allowing only the US to terminate the agreement is faulty. “Nepal should include a provision allowing it also to terminate the agreement as the provision is against the spirit of equality between sovereign countries,” a standing committee member Bhim Rawal said, adding that Nepal should also be allowed to audit the accounts, which according to the agreement, is not allowed. Rawal – in the standing committee meeting – asked foreign minister Gyawali to seek clarification from the US, if the grant is provided as a part of the IPS.
The ongoing debate over the MCC, according to the experts, is nothing but ‘the best example of ruling party’s myopic diplomacy.’ But foreign minister Gyawali ruled out any diplomatic friction between Nepal and the US due to the ongoing debate on the US programme and the growing demand from the party members to seek clarity from Washington.
Replying the members at the standing committee meeting co-chair of Nepal Communist Party (NCP) Pushpa Kamal Dahal today said that Nepal could accept US assistance under MCC compact programme after clearance from its relation with IPS, which some of the ruling party members think a military alliance to counter China – the northern neighbour – and Beijing’s Belt and Road Initiative (BRI).
Dahal said that Nepal could accept the MCC only after considering the strings attached to the programme, according to the NCP (NCP) standing committee member Beduram Bhusal. “We have to see how far the conditions of the MCC programme suit Nepal’s national interests,” Bhusal quoted Dahal as telling the committee. “Dahal said while Nepal should continue to enjoy its old and cordial relations with the US, it could not be part of any military alliance in the guise of any programme.”
Some of the standing committee members told the meeting that MCC is part of the IPS and hence Nepal should not accept it. They put pressure on the leadership and the government seeking clarity from the US on MCC, and its relations to IPS. “The IPS has been a subject of speculation among the political and diplomatic circles ever since foreign minister Pradeep Kumar Gyawali visited Washington last December,” they claimed.
Nepal became eligible for the MCC – announced in 2002 by US President George W Bush – in 2011 and signed the agreement in 2017. Though, the MCC compact was signed by Nepali Congress (NC) government of which the former Maoist party was a coalition partner, the ruling party – unified between former Maoist party and fomer CPN(UML) party – has been sharply divided about endorsing the US grant from the Parliament.
The implementation of MCC will start once the Nepal’s Parliament ratifies it. The MCC, however, did not pass during the previous House session because of the reluctance of then House Speaker Krishna Bahadur Mahara, though foreign minister Pradeep Kumar Gyawali assurance that MCC was not part of IPS. The government spokesperson and minister for Communication and Information Technology Gokul Baskota has – during his regular weekly press briefing – also claimed that the MCC will be ratified by the Parliament’s winter session that started yesterday. The opposing ruling party leaders did not believe even the Prime Minister KP Sharma Oli, who has also claimed that the MCC will be endorsed during the winter session of Parliament.
The US has announced that it will provide assistance of $500 million in grants to Nepal under the MCC programme over the next five years. Nepal has to invest more than Rs 13 billion – as a matching fund – for the programme. The grant will be used to construct the toad and transmission lines, for better connectivity. Nepal plans to use the grant to develop the 400-KV Nepal-India Butwal-Gorakhpur electricity transmission line and to upgrade some roads.
The US officials have repeatedly termed MCC an important initiative under the Washington-led IPS. The US officials including US envoy to Nepal Randy Berry have also time and again clarified that IPS is just a US ‘policy’ and it does not require or demand membership from anyone. But opposing leaders have been claiming that the MCC is part of the US military strategy IPS to counter China and Beijing’s influence.
The leaders, who are opposing the MCC, are also claiming that the provision – in the agreement – allowing only the US to terminate the agreement is faulty. “Nepal should include a provision allowing it also to terminate the agreement as the provision is against the spirit of equality between sovereign countries,” a standing committee member Bhim Rawal said, adding that Nepal should also be allowed to audit the accounts, which according to the agreement, is not allowed. Rawal – in the standing committee meeting – asked foreign minister Gyawali to seek clarification from the US, if the grant is provided as a part of the IPS.
The ongoing debate over the MCC, according to the experts, is nothing but ‘the best example of ruling party’s myopic diplomacy.’ But foreign minister Gyawali ruled out any diplomatic friction between Nepal and the US due to the ongoing debate on the US programme and the growing demand from the party members to seek clarity from Washington.
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