U.S. Government Reaffirms Continuation of MCC Compact in Nepal
The U.S. government has decided to continue the Millennium Challenge Corporation (MCC) compact in Nepal, backing $500M in aid plus Nepal’s contribution of $197M.
The United States government has reaffirmed its commitment to continue the Millennium Challenge Corporation (MCC) compact in Nepal, following a comprehensive foreign aid review. The announcement was confirmed by the U.S. Embassy in Kathmandu last week.
According to the embassy, the foreign assistance review concluded with a recommendation to proceed with the MCC Nepal Compact, and the Nepal government has been formally notified of this decision. The MCC agreement includes a U.S. grant of $500 million, complemented by an additional $197 million from the Government of Nepal.
The MCC Nepal Compact aims to strengthen Nepal’s power transmission infrastructure and upgrade key road networks, thereby supporting economic prosperity and regional energy integration. With the U.S. government’s green light, the path is now clear for continued implementation of the program.
This development comes amid increased scrutiny and debate over foreign aid and geopolitical influence in South Asia, but it signals Washington’s intent to deepen its development partnership with Kathmandu.