August 23: The Millennium Challenge Compact signed between the Ministry of Finance and Millennium Challenge Corporation (MCC) six years ago is poised for its entry into force (EIF) for the full-scale implementation. 

A meeting of the Board of Directors of Millennium Challenge Account Nepal Development Committee (MCA-Nepal) held on August 16 has set the time of August 30 for the EIF, the MCA Nepal said.

Under the terms of the agreement, the construction of power transmission lines and road development projects must be completed within five years from the commencement of EIF. However, some pending matters related to land acquisition and compensation distribution still require attention, according to MCA Nepal.

The initial agreement was signed between the Finance Ministry and MCC on September 14, 2017. After receiving parliamentary ratification with an interpretative declaration eighteen months ago, most of the six preconditions necessary for EIF have been fulfilled, with the exception of land acquisition.

For the successful execution of the power transmission project under MCA Nepal, a total of 1,471 hectares of land is needed. Additionally, around 20 hectares of land are earmarked for the development of the Ratmate substation in Nuwakot.

Significantly, Nepal's financial obligations have risen from the original agreement. While the previous commitment stood at 130 million US Dollars, Nepal's share has increased to 197 million US Dollars. Consequently, the total cost of MCC projects in Nepal has escalated from 630 million Dollars to 697 million US Dollars. (RSS)