February 22: Political parties are deeply polarized over the MCC grant assistance worth Rs 55 billion from the USA, which has been tabled in parliament for endorsement.

Amidst differing stances taken by the political parties, the private sector has requested the political leadership to keep politics away from development.

The private sector was quick to welcome the MCC as soon as it got tabled in the parliament, stating that development should be devoid of politics.

According to the Confederation of Nepalese Industries (CNI), an umbrella body of business organizations and industrialists, the political parties should make commitment not to intervene in development matters.

The CNI said that the government can reap benefit from timely implementation of development projects by taking the people into confidence.

CNI President Vishnu Kumar Agarwal said that the MCC agreement is important for the development of electricity and road sector, which are of strategic importance to Nepal's economic development.

“A hefty investment is needed for sustainable development and post-Covid-19 economic recovery,” said Agrawal, adding, “For this too, infrastructure support like MCC is necessary for the country”.

According to Agarwal, after the implementation of this project, Nepal can make a qualitative leap in trade and other economic sectors.

Former president of the Federation of Nepalese Chambers of Commerce and Industry Pashupati Murarka was also in favor of approval of MCC. According to him, if the MCC is tabled and approved, the message of an investment-friendly environment will circulate around the world.

Similarly, President of the  Nepal Chamber of Commerce, Rajendra Malla was also glad about the government’s decision to table the MCC in parliament.

According to him, MCC should be passed to maintain the trust that donors have on Nepal. According to the private sector stakeholders, the implementation of MCC will also contribute to foreign exchange earnings.

The private sector emphasizes that more than 30 countries in Europe, Asia, Latin America and Africa have enhanced their economies by implementing MCC-assisted projects and that Nepal should also implement this project in a timely manner and set a precedent in technology transfer, project implementation and development management.

The Millennium Challenge Corporation (MCC) agreement, which is directly linked to the transmission line and road infrastructure that will directly benefit 23 million citizens, was tabled in the House of Representatives on Sunday (February 20).

While presenting the MCC agenda in parliament, Communication Minister Gyanendra Bahadur Karki had said that about 5 million households would directly benefit from the project within five years of its implementation.

The government expects the 312 km long 400 kV capacity double circuit transmission line starting from Nangle Bhare in Kathmandu to Butwal to be the backbone of Nepal's energy sector. This project will also be of strategic importance in bringing the electricity produced by the projects constructed in the corridors of Tamakoshi, Bhotekoshi, Trishuli, Budhigandaki and Kaligandaki to the national grid.

All the former prime ministers are involved in this project that started during the tenure of former Prime Minister Madhav Kumar Nepal and the then finance minister Surendra Pandey. MCC has allocated about Rs 55 billion grant assistance for the development of Nepal's energy and transport sectors. The Government of Nepal will invest around Rs 14 billion in this project.