July 25: The United States of America (USA) has increased pressure on Nepal to implement the projects under the Millennium Challenge Corporation (MCC) on time. The USA had sent high-ranking officials to Kathmandu in this regard.

The MCC project under US grant assistance was ratified by the House of Representatives in February 2022 and is ready to be implemented from coming August.

US Assistant Secretary of State for South and Central Asia Donald Lu recently visited from Nepal to discuss this matter with the main leaders of Nepal. His visit came at a time when the government was struggling in land acquisition for the project.

Lu met with the Prime Minister Pushpa Kamal Dahal and the chairman of the main opposition party CPN (UML) KP Sharma Oli to take stock of the progress in the implementation of the MCC project.

He also met Nepali Congress President Sher Bahadur Deuba and Foreign Minister NP Saud. Lu's conveyed a message to the bereaved Prime Minister Dahal after reaching Baluwatar that the MCC project should be implemented on time.

A source close to Deuba informed New Business Age that Lu inquired about the progress in implementation of the MCC with Deuba.

Lu also raised the same question with Foreign Minister Saud. Minister Saud replied that the implementation of MCC will be expedited as soon as possible.

“The projects under the MCC will go into the implementation phase from this August. We told the US delegation that Nepal is ready for implementation," said Minister Saud.

The MCC was approved by the House of Representatives on February 27, 2022 with a commitment not to join any military alliance. MCC was tabled in Parliament on September 24, 2021 when the political parties were divided on whether to approve the US-funded project or not.

Back then, Lu had visited Nepal to exert pressure on the leaders to endorse the project. This is Lu's third visit to Nepal. This makes it clear that America has increased pressure on Nepal to implement the MCC on time.

Lu reportedly told UML Chairman Oli that senior American officials are coming to Nepal soon to move the MCC forward.

According to the MCC grant agreement, the United States will provide US$ 500 million to Nepal for construction of cross-border transmission line and upgrading of roads while Nepal will have to contribute US$ 130 million for the project.

The United States has put pressure on Nepal to bear the additional cost burden incurred due to the delay in the implementation of the MCC project.

More than Rs 2 billion have been spent on the MCC project so far.  Land acquisition in ten districts where the MCC project will be implemented has not yet been completed yet. The government has allocated a budget of Rs 10 billion for the Millennium Challenge Account (MCA) Nepal, a project management body under MCC, in the current fiscal year (FY 2023/24). The government will contribute Rs 2.21 billion while the US will fund Rs 8.63 billion.

Rs 5.36 billion has been set aside for building transmission lines and substations and Rs 1.4 billion for road construction under the heading of current expenses. Meanwhile, Rs 1.28 billion has been set aside for consultation.