KATHMANDU, FEBRUARY 27
In an unexpected turn of events, the ruling coalition parties other than Nepali Congress agreed on ratifying the Millennium Challenge Corporation, earlier on Sunday.
However, leaders of the alliance including CPN-Maoist Centre, CPN-Unified Socialist and Janata Samajwadi Party-Nepal forwarded a 'clause' that an interpretive declaration must be attached to the proposal of endorsement of the US government's grant before presenting it in the House of Representatives for ratification.
The term Byakhyatmak Ghoshana (Interpretive Declaration) has since trended on social networking sites and news portals, with many wondering what the declaration is all about.
We attempt to explain to our readers what the interpretive declaration means.
In the declaration, the government has clarified that Nepal shall not adhere to any strategic, military or security alliance of the US, Indo-Pacific Strategy included, by being a party to the MCC pact.
Secondly, Section 2.7, Section 5.2 (b)(iii), Section 5.2 (b)(iv) of MCC will be applicable only for the use of the funding of the compact. Nepal will not comply with United States' laws and policies - present or future - for purposes other than those related to the funding.
Nepal, through the document, has declared that activities corresponding to MCA Nepal (Millennium Challenge Account Nepal Development Board) will be regulated by laws of the country and the compact, pursuant to Section 3.2 (b).
Furthermore, Nepal and not MCC will enjoy ownership of or rights over intellectual property of programs created under the compact, with reference to Section 3.2 (1) of the agreement.
Likewise, pursuant to Section 3.5, Implementation Letters shall be implemented within the compact's scope.
Nepal declared that audits of all MCA-Nepal related activities and funds of MCA-Nepal would be conducted by the Office of the Auditor-General as per prevailing laws of Nepal - wrt Section 3.8(a).
The right to terminate the compact/funding following a 30-day written prior notice, should its activities violate Nepal's existing laws, will be reserved by Nepal - wrt Section 5.1 (a).
The interpretive declaration postulates that compact-provisions that survive after the expiration, suspension or termination of agreement will be relevant to outstanding fund-use including evaluation of the projects, audits, tax-settlement - wrt Section 5.5.
Additionally, the Constitution of Nepal shall prevail over the compact and the implementation of projects under the Compact will correspond with existing laws of the land, in accordance with the compact - wrt Section 7.1.
Nepal government will own the Electricity Transmission Project including all movable and immovable assets, associated lands included - wrt Section 8.1.
Finally, the declaration states that Nepal understands the responses in the MCC letter received on September 8, 2021 will support interpretation and implementation of the compact.
