Himal Press 
KATHMANDU: Nepal and the US government’s Millennium Challenge Corporation (MCC) have announced an additional $50 million in US grant financing for the MCC Nepal Compact.
Issuing a statement on Wednesday, the US Embassy in Kathmandu said this brings the Compact’s total value to $747 million – $550 million from the United States and $197 million from the Nepal government.
“The added resources will help deliver the Compact’s core objectives: completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling increased regional power trade,” it said. “By improving grid reliability and market access, the Compact is expected to support international connectivity and promote American excellence and best practices in energy infrastructure.”
The compact also expands opportunities for US companies and technology to enter Nepal’s market.
The embassy further said that the fresh funding reflects the enduring partnership between the two governments.
“For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity. The MCC Nepal Compact continues that record through no-debt, grant-based assistance focused on high-impact infrastructure,” it added.
The grant program aims to improve Nepal’s energy and transportation sectors through two main projects: an Electricity Transmission Project and a Road Maintenance Project. The transmission project aims to build a 318 km, 400KV transmission line and substations to enable electricity export, while the road project will rehabilitate approximately 300 km of the East-West Highway.
