First Business News Portal in English from Nepal
KATHMANDU: The Millennium Challenge Corporation (MCC) Compact has officially commenced its comprehensive implementation starting this Wednesday.
The Millennium Challenge Account Nepal (MCA-Nepal) has announced the initiation of the Entry into Force (EIF) phase, a pivotal component of the program, effective August 30. This milestone marks the commencement of the five-year timeline for the program.
Scheduled for Wednesday, the EIF launch establishes a clear timeframe for the completion of projects outlined in the MCC Nepal Compact, which encompass the construction of power transmission lines and roads. The goal is to finalize these projects within the upcoming five years.
MCA-Nepal has reported that five out of six prerequisites necessary for EIF implementation have been fulfilled. The acquisition of land required for the EIF remains the outstanding condition. Approximately 1,471 hectares of land are needed to facilitate the construction of electricity transmission lines.
Originally slated to begin on June 30, 2020, the EIF implementation faced delays due to challenges in obtaining parliamentary endorsement for the MCC and in addressing project-related prerequisites.
In September 2017, the US Government’s MCC entered into a grant agreement worth $500 million with the Government of Nepal. Delays in executing projects under the MCC have resulted in a government financial obligation increase of $67 million.
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