February 28: The obstacles for implementing the Millennium Challenge Corporation (MCC) compact have been removed with the ratification of the US-funded project from parliament.

The passage of MCC has opened doors for a grant assistance of Rs 55 billion, which will primarily be used for construction of transmission lines and roads.

Until now, the project signed in 2017 had remained uncertain because the political parties were divided over its endorsement. But now, the project is all set to be implemented in full fledge, according to the officials of the Millennium Challenge Account (MCA) Nepal. MCA Nepal is body formed by the Government of Nepal in April/May 2018 (2075 BS) under the Development Committee Act, 2013 in order to implement the projects under the MCC grant agreement. The MCC compact will be implemented by MCA Nepal.

Communication officer of MCA Nepal Rajiv Dahal said that the preparatory works for the project had slowed down because of the delay in endorsing the MCC from parliament.

Now, the MCA Nepal, under this project, will complete the works related to land acquisition and seek within one year the permission to use forest areas. Then the EIF meeting will be held to implement the project. This meeting will fix the deadline for projects under MCC to be completed within 5 years. The MCC will release funds after this meeting as per the cost estimate submitted by MCA Nepal.

The US government will provide grant assistance of US$ 500 million while the Government of Nepal will invest US$ 130 million for this project. If Nepal is not able to spend the grant pledged by the USA within 5 years, the unspent amount has to be returned back.