US discusses MCC next steps with Nepal

KATHMANDU:  The United States government's Millennium Challenge Corporation (MCC) recently discussed with the Nepal government implementation of the MCC projects in Nepal and the next steps.

MCC Regional Deputy Vice President for Compact Operations, Fatema Sumar, visited Nepal this week to advance development of an MCC compact with the Government of Nepal and held meetings with Prime Minister Pushpa Kamal Dahal, Minister for Physical Infrastructure and Transport Ramesh Lekhak, according to a statement issued by the Kathmandu-based US Embassy.

"Sumar updated the government on new feasibility studies recently launched by MCC as part of a USD 10 million grant to the Government of Nepal for compact development," the statement read, "The feasibility studies focus on electricity transmission line projects and will inform compact program design and preparation."

“MCC and the Government of Nepal have made significant progress toward developing a compact that will unlock widespread and sustainable economic growth,” the statement quoted Sumar as saying, “Through our partnership, we will continue to work together to finalize the compact agreement and power sector operational environment that supports the electricity and transport sectors and improve the lives of the people of Nepal.”

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

MCC and the Government of Nepal are developing projects that tackle key constraints to economic growth in the country, including the inadequate supply of power and the high cost of transportation, the statement informed.