U.S pauses MCC project in Nepal
Ministry of Finance has said that two projects under Millennium Challenge Corporation(MC)—construction of cross-border transmission line and upgradation of road—have been paused following U.S President Donald Trump’s executive order to pause all foreign assistance for 90 days.
Issuing a press statement, Ministry of Finance said projects have been paused for 90 days. The program is co-funded by the US Government’s MCC compact grant of $500 million and Nepal government’s contribution $197.
The program aims to increase the availability and reliability of electricity, maintain road quality and facilitate power trade between Nepal and South Asia. As per the agreement, two projects should be completed within four-year which was officially launched in August, 2023. The projects are already behind the scheduled posing a challenge to meet the deadline. US invested a lot of energy and efforts to pass MCC from Nepal’s Parliament as parties were divided over the project.
