MCC projects suspended

KATHMANDU: The withdrawal of funding by the US government has affected Millennium Challenge Corporation (MCC) projects in Nepal.

The Ministry of Finance said in a statement on Tuesday evening that MCC projects have been suspended with immediate effect.

“Through an email dated February 14, the US aid agency Millennium Challenge Corporation (MCC) has informed us that expenses to be paid from MCC funds related to projects being implemented under the $500 million MCC Compact signed between the Government of Nepal and the agency on September 14, 2017, have been suspended in accordance with the President’s executive order issued on January 20, 2025,” the statement added.

Nepal is implementing transmission line and road projects with the assistance of MCC.

Millennium Challenge Account Nepal (MCA-Nepal) invited bids to build a 297-km power transmission line on November 27 last year, giving interested companies until January 30 to submit their proposals. The decision will affect this procurement. The transmission line was to be implemented by dividing into three segments: Lapsiphedi-Ratamate-New Hetauda, Ratamate-New Damauli, and New Damauli-New Butwal.

Work was underway on three 400 kV substations and the 18 km transmission line.