Commencement of Official Implementation of MCC Compact in Nepal Today

The Millennium Challenge Corporation (MCC) Compact is now officially embarking on its comprehensive implementation phase, commencing from Wednesday.

According to the Millennium Challenge Account Nepal (MCA-Nepal), the Entry into Force (EIF) phase, a pivotal element of the program, is being initiated as of August 30. This marks the commencement of a five-year timeline for project execution.

With the designated EIF date set for Wednesday, the tasks encompassing power transmission line establishment and road construction, outlined within the MCC Nepal Compact, are expected to conclude within the upcoming five years.

MCA-Nepal has reported that among the six prerequisites outlined for EIF implementation, five have been successfully fulfilled. However, the finalization of land acquisition for the EIF remains pending. Approximately 1,471 hectares of land are required for the construction of electricity transmission lines, according to MCA-Nepal.

The original EIF rollout was slated for June 30, 2020. Nonetheless, challenges in obtaining parliamentary endorsement for the MCC and difficulties in managing project-related prerequisites resulted in a delay in initiating the EIF phase.

Back in September 2017, the United States Government’s MCC entered into a grant agreement of US $500 million with the Government of Nepal. Due to project implementation delays under the MCC, the government’s financial commitment has grown by US $67 million.