MCC in Nepal - Facts from US and the MCC Program

From the Embassy of USA Nepal's webpage.

Recently Nepali citizens, politicians, and members of the media have been asking questions about the Millennium Challenge Compact (MCC) in Nepal.  We welcome your questions and the Nepali public’s engagement in understanding what benefits the program would bring to Nepal because the MCC was founded as a new model for international development based on transparency and true partnership.

1.  At the request of Nepal’s leaders, the U.S. government began working with Nepal in 2012 toward the development of an MCC compact.
2. Each government and every Nepali political party, when in power, has expressed a desire to conclude an MCC Compact for economic development in Nepal.
3. The MCC project is focused purely on economic development by helping to build power lines and improve roads.
4. There is NO military component to the MCC.  In fact, U.S. law prohibits it.
5. Nepal does not need to “join” or “sign up” for anything in order to participate in the MCC.
6. The $500 million is a grant, with no strings attached, no interest rates, and no hidden clauses.  All Nepal has to do is commit to spending the money, transparently, for the projects that have been agreed upon.
7. Nepalis proposed and decided which projects MCC will fund in Nepal based on Nepal’s own priorities.
8. MCC’s model requires Nepal to hire Nepalis to lead the implementation of the projects.
9. MCC project tenders are open, transparent, and available to everyone.
10. In Nepal, as in every country where MCC works, parliamentary ratification is required and provides transparency and an opportunity for Nepalis to understand the project.

Anyone who has questions about what MCC is—or isn’t—can find these facts, all the background and data relating to MCC in Nepal, and loads of information at mcc.gov

 

From mcc.gov website about the Nepal Compact program.

Nepal

Program: Nepal Compact

Status: Signed

Program amount: $500,000,000

Signed: September 14, 2017

Nepal is one of the poorest countries in Asia, with nearly half of the population living on less than three dollars a day. It continues to face extensive economic development challenges caused by high transportation costs to move both goods and people as well as an inadequate supply of electricity. Decades of political transition and the devastating earthquakes of 2015 further compounded Nepal’s development challenges.

The MCC compact with Nepal marks a new chapter in the U.S.-Nepal Partnership. MCC’s Nepal Compact is designed to increase the availability of electricity and lower the cost of transportation in Nepal. These investments will help the Government of Nepal better deliver critical services to its people, ease the movement of goods around the country, and open up new opportunities for private investment. Strengthening the reliability of key infrastructure will put the country’s economy on a firmer growth trajectory, advance stability, support regional security, and reduce poverty.

An additional $130 million from the Government of Nepal in support of the compact − the highest up-front contribution from a partner country − enables MCC’s investment to have an even greater impact.

Tagged: MCC 7, MCC Nepal 1