The way forward with the MCC Compact

It would be a wise decision for both Nepal and the US to go ahead with its execution with some changes.

A grant assistance of $500 million to Nepal by the United States government through its aid agency Millennium Challenge Corporation (MCC) continues to generate heated discussions in Nepal’s political and economic sectors. The grant agreement, named Millennium Challenge Corporation’s Nepal Compact and signed by the two governments in 2017, requires Nepal to contribute an additional $130 million towards the total project cost of $630 million. As the agreement remains to be ratified by Parliament, the ruling Nepal Communist Party is in the spotlight for its internal strife on the matter.