MCC clock to start ticking from Aug 30

KATHMANDU: The Millennium Challenge Compact’s Entry into Force (EiF) date has been scheduled for August 30.

The meeting of the board of directors of the Millennium Challenge Account Nepal Development Committee (MCA Nepal) held on August 16 took the decision to this extent.

Once the MCC clock starts on August 30, the projects to be executed under the MCC must be completed within five years.

Nepal is implementing an electricity transmission line project and a road upgrade project as part of the MCC.

The Government of Nepal (GoN) and the Millennium Challenge Corporation (MCC), representing the US Government, signed a $500 million grant agreement on September 14, 2017. The agreement was ratified by the parliament on February 27, 2002.

Officials have stated that all prerequisites to commence the projects, except for land acquisition, have been fulfilled. Tasks such as signing the compact, designating MCC projects as ‘national pride projects,’ establishing the Nepal Electricity Regulation Commission as the power sector’s regulatory body, and obtaining India’s approval for the Butwal-Gorakhpur Transmission Line project, have all been completed.

MCC Nepal is required to acquire 1,471 hectares for the transmission line component and 20 hectares for the construction of a substation in Ratamate, Nuwakot.

According to MCA Nepal, the process of distributing compensation for land intended for the transmission line component has already commenced. However, there are ongoing disputes related to land acquisition in the Ratamate area.