Nepal faces risk of aid cut by donor agencies, says Pandey

KATHMANDU: Former finance minister and CPN-UML  Vice Chairperson Surendra Pandey has warned that Nepal faces an increased risk of reduced support from international donor agencies.

Speaking at an interaction by the party in Kawasoti of Nawalparasi East on Monday, Pandey said that the decisions of US President Donald J Trump have not only affected aid from the United States but also increased the risk of reduction in grants from other friendly nations.

“Not only have the projects funded with USAID assistance been suspended. There is also uncertainty about Nepal’s obligations under the MCC,” he said. “If the MCC is also halted, we will face a dilemma: either we must complete the work by making payments as per the contract, or we will have to bear compensation costs if the contract is canceled.”

Works on three 400 kV substations in Ratamate of Nuwakot, Damauli of Tahanhun and Butwal of Rupandehi and an 18-kilometer cross-border electricity transmission line were under construction under the $500 million Millennium Challenge Corporation (MCC) grant.  The workers have now been suspended for 90 days.