KATHMANDU, FEBRUARY 27
The 12-point interpretive declaration adopted by the Cabinet today and ratified by the House of Representatives, along with the Millennium Challenge Corporation compact is as follows:
• Nepal declares that by being party to the compact, Nepal shall not be party to any United States strategic, military or security alliance, including the Indo-Pacific Strategy
• Nepal declares that the constitution of Nepal, being the fundamental law of land, shall prevail over the compact and other associated agreements
• With reference to Section 2.7, Section 5.1 (iii) 5.1 (b) (iv) of the compact, Nepali government understands that these sections are intended to apply only for the use of the MCC funding and programme assets and that the provisions do not and shall not obligate Nepal to comply with the current or future United States' laws and policies for any purpose other than the use of the MCC funding
• With reference to Section 3.2 (b) of the compact, Nepal declares that the conduct of activities of the Millennium Challenge Account Nepal Development Board (the MCA Nepal) shall be governed by laws of Nepal and regulated by provisions of the compact
• With reference to Section 3.2 (f) of the compact, Nepal declares that MCC will not have ownership of the intellectual property and that Nepal shall own and fully enjoy all the intellectual property created under the compact programme
• With reference to Section 3.5, Nepal declares that implementation letters under the compact shall be implemented within the scope of the compact
• With reference to Section 3.8(a) of the compact, Nepal declares that in addition, the audits of all activities and funds of MCA Nepal shall be audited by Office of the Auditor General in accordance with the prevailing laws of Nepal
• With reference to Section 5.1(a) of the compact, Nepal declares that in addition to Nepal's right to terminate the compact without cause by giving 30 days' prior written notice, Nepal has the right to terminate the compact by giving 30 days' prior written notice in case the activities/ programmes under the compact violate Nepal's laws or policies
• With reference to Section 5.5 of the compact, Nepal declares that provisions under the compact which survive after the expiration, suspension, or termination of the compact shall only relate to the compact programme and the use of MCC funding, including for evaluation of the projects under the compact, audits and settlements of taxes
• With reference to Section 7.1 of the compact, the programme under the compact shall be implemented by complying with the compact and in accordance with domestic laws of Nepal
• With reference to Section 8 of the compact, Nepal declares that the electricity transmission project, all moveable and immovable assets, and land associated with the project shall be owned by the government of Nepal or entities of the Government of Nepal
• With reference to the letter dated 8 September 2021 received by Nepal from the Millennium Challenge Corporation, the government understands that the responses in the said letter shall aid in the interpretation and implementation of the compact
A version of this article appears in the print on February 28, 2022, of The Himalayan Times.
