MCC Board approves $50 million additional funding for Nepal Compact

Kathmandu / Jan 03: The Millennium Challenge Corporation (MCC) Board of Directors has approved $50 million in additional funding for the Nepal Compact.

This Board action underscores the shared commitment between MCC and the government of Nepal to advancing Nepal’s development priorities through transformative, high-quality infrastructure projects, the MCC said in a statement.

“The additional funding reaffirms our mutual dedication to ensuring the compact’s success in strengthening Nepal’s electricity grid and supporting long-term economic growth,” said MCC Vice President of Compact Operations Cameron Alford.

The Millennium Challenge Corporation is an independent US government development agency working to reduce global poverty through economic growth.

The projects built under the MCC Nepal compact must be completed within five years after the compact came into force in the last week of August last year.

Nepal’s Parliament ratified the much-debated MCC compact in February 2022, following an agreement in 2017 between the government and the MCC. The MCC compact signing opened the way for the United States to support $500 million in Nepal’s power and transport infrastructure. The government of Nepal, on its part, contributes $197 million in support of the compact.