MCC compact to be implemented from August 30

KATHMANDU, AUGUST 23: The compact, signed between the Ministry of Finance and the Millennium Challenge Corporation (MCC) six years ago, is now set to advance with the establishment of the entry into force (EIF) for full-scale implementation. During a meeting of the Board of Directors of the Millennium Challenge Account Nepal Development Committee (MCA-Nepal) on August 16, it was decided that the EIF would take place on August 30, as informed by MCA Nepal to the RSS.

The construction of power transmission lines and road development projects must be completed within five years from the start of the EIF. However, there are still some pending issues related to land acquisition and the distribution of compensation.

The agreement between the Finance Ministry and the Corporation was initially signed on September 14, 2017, and it was ratified by the parliament with an interpretative declaration a year and a half ago. Out of the six preconditions required prior to the EIF, all of them have been fulfilled except for the land acquisition.

For the power transmission project under the MCA Nepal, a total of 1,471 hectares of land are needed, along with around 20 hectares for the Ratmate substation to be developed in Nuwakot.

Moreover, Nepal's financial liabilities have increased compared to the preliminary agreement. Initially set at 130 million US Dollars, Nepal is now responsible for 197 million US Dollars. As a result, the cost of the MCC projects in Nepal has risen from 630 million US Dollars to 697 million US Dollars.