Time for Nepal to Accelerate MCC Work

The Millennium Challenge Corporation (MCC) Nepal Compact will move forward as planned, thanks to a waiver from the U.S. Secretary of State in February 2025. This decision ensures that the program will be fully implemented as the United States reviews its foreign aid policy. The U.S. Embassy in Kathmandu stated that both the MCC and the U.S. Mission are working closely with relevant partners to support steady progress in Nepal. The Embassy emphasized that the United States is committed to helping Nepal achieve its economic goals and to strengthening the long-standing partnership between the two nations. The MCC Nepal Compact, negotiated in 2017 and approved in 2022, includes a $500 million investment from the U.S. and a $197 million contribution from Nepal. It has significant plans. It aims to build 315 kilometers of 400 kV transmission lines, three substations, and key road improvements using modern technologies such as asphalt recycling. These projects are designed to improve energy access, enhance road quality, and position Nepal as a stronger power exporter. Now that operations are permitted, the program must move forward more quickly. The infrastructure it supports can shape Nepal's economic future, and any delays would only hinder opportunities for growth, regional trade, and industrial development.