Monday, June 29, 2020

MCC funding not open-ended: US Embassy

As the ratification of Millennium Challenge Corporation (MCC) become uncertain due to ruling political party’s internal feud, the United States Embassy in Kathmandu has clarified that it cannot wait indefinitely for Nepal to take final decision. “The accepting MCC grant is Nepal’s choice but availability of the funding is not open-ended,” reads a press note issued by the United States Embassy in Kathmandu.
The US diplomatic mission said that the United States is aware that Nepal’s parliament has not yet ratified the MCC Compact. “The ratification is the next step needed to proceed with the $500M grant, which the two countries signed in September 2017 and which Nepal committed to ratify by September 2019,” it reads, adding that delaying ratification is delaying the benefits of more jobs and increased economic growth for nearly 23 million Nepalis. “Accepting this grant is Nepal’s choice but availability of the funding is not open-ended, and tangible, near-term steps in Nepal are necessary to ensure the continued viability of the programme.”
The government and MCC have worked together continuously since 2012 under multiple governments, representing all major political parties, to develop the compact programme, it further reads, adding that this compact will build electric transmission infrastructure and perform road maintenance activities, and directly benefit 23 million Nepalis. “The projects funded by the compact are priorities identified by Nepal during the nearly three years of project design to benefit the people of Nepal.”
According to the US Embassy, MCC is a committed partner having successfully partnered with nearly 30 countries worldwide on 37 grant agreements of several hundred million dollars, totaling $13 billion. Every country eligible for a second grant has requested one.
The press note also brushed aside speculations made by a section of people in Nepal that MCC has a hidden agenda. “MCC’s transparency as a development partner is also recognised globally, and this year MCC was once again ranked as the top bilateral development partner in the Aid Transparency Index (AIT).”
The United States and Nepal share a 73-year partnership working together in many sectors successfully and to the benefit of both countries, the Embassy press note reads, “The Nepali-led projects funded by the MCC compact support poverty reduction through economic growth.”
The statement comes in the wake of a section of politicians and others making speculation that the US was exerting pressure on Nepal to accept the grant. 

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