KATHMANDU: In a bid to advance development of the Millennium Challenge Corporation compact (MCC compact), the US government's MCC Regional Deputy Vice President for Compact Operations Fatema Sumar visited Nepal this week.

During her visit this week, Sumar held meetings with Prime Minister KP Sharma Oli, Deputy Prime Minister and Minister for Physical Infrastructure and Transport Bijay Kumar Gachhadar, Finance Minister Bishnu Paudel, and Secretary of Ministry of Energy Suman Prasad Sharma among others, the US Embassy said in a statement today.

The MCC is an innovative and independent US foreign aid agency that is helping lead the fight against global poverty. Created by the US Congress in 2004, it provides time-limited grants and assistance to countries with a focus on good policies, country ownership, and results.

"During the coming year, MCC will conduct a comprehensive appraisal of specific project options within the power and transport sectors," the statement said, "In the power sector, proposed projects focus on improving delivery of electricity by reducing transmission bottlenecks and improving other segments of the power sector value chain.  In the transport sector, proposed projects focus on a combination of road maintenance, rehabilitation, and critical upgrades."

"MCC will work with the Government of Nepal, through the Office of Millennium Challenge Nepal, to determine which sectors and projects to ultimately pursue based on the outcome of MCC’s feasibility studies and appraisal."

Meanwhile, the statement informed that the size of MCC’s compact with Nepal had not been finalised yet. "The size will be determined by the projects that meet MCC’s investment criteria and the availability of funds."

Nepal was selected by MCC’s Board of Directors as eligible for a compact in December 2014.