KATHMANDU: The United States Embassy in Nepal has stated that accepting the Millennium Challenge Corporation (MCC) grant is Nepal’s choice, however, availability of the funding is not open-ended.

In a statement issued on Monday, the American diplomatic mission in Nepal said, United States is aware that Nepal's Parliament has not yet ratified the the MCC Compact. It further stated that ratification is the next step needed to proceed with the $500M grant, which the two countries signed in September 2017 and which Nepal committed to ratify by September 2019.

"Delaying ratification is delaying the benefits of more jobs and increased economic growth for nearly 23 million Nepalis," the Embassy said. "Accepting this grant is Nepal’s choice but availability of the funding is not open-ended.  Tangible, near-term steps in Nepal are necessary to ensure the continued viability of the programme."

The Government of Nepal and MCC have worked together continuously since 2012 under multiple governments, representing all major political parties, to develop the compact programme, it added. "This compact will build electric transmission infrastructure and perform road maintenance activities, and directly benefit 23 million Nepalis.  The projects funded by the compact are priorities identified by Nepal during the nearly three years of project design to benefit the people of Nepal."

According to the US Embassy, MCC is a committed partner having successfully partnered with nearly 30 countries worldwide on 37 grant agreements of several hundred million dollars, totaling $13 billion. Every country eligible for a second grant has requested one.

MCC’s transparency as a development partner is also recognized globally, and this year MCC was once again ranked as the top bilateral donor in the Aid Transparency Index, reads the statement.

"The United States and Nepal share a 73-year partnership working together in many sectors successfully and to the benefit of both countries.  The Nepali-led projects funded by the MCC compact support poverty reduction through economic growth."