KATHMANDU: The Government of Nepal has reiterated its commitment to conclude the projects under the MCC within the deadline. Finance Minister Barsha Man Pun made such remarks during a meeting with visiting Deputy Vice President of Millennium Challenge Corporation (MCC), Jonathan Brooks, on Tuesday.

The delegation led by Brooks called on the Minister at the latter's office at Singha Durbar. During the meeting, Brooks requested for updates regarding the progress in the construction of an electricity transmission line and road projects under the MCC. In response, Finance Minister Pun said he said he was hopeful of the timely completion of the MCC projects.    

A 315-km cross-border transmission line is being developed under the MCC Project along with the road upgrading works within the next five years.    

Under the 400 kV double circuit transmission line stretching from Butwal to Gorakhpur, works are underway to build sub-stations at Ratmate of Belkotgadhi municipality of Nuwakot, Damauli of Tanahu and Bhumahi of Nawalparasi East. This is considered the largest transmission line in the country. The transmission line project will have a total of 856 towers.    

Nepal and the US signed the MCC Project worth $500 million on September 14, 2017. However, the MCC was delayed due to widespread protest by a section of the society on the pretext that the grant agreement was allegedly a part of the Indo-Pacific Strategy of the US government.

After much debate and deliberations, the House of Representatives finally ratified the MCC grant agreement on February 27, 2022 with a 12-point explanatory note clarifying that the project should not be associated with any military alliance and that the grant agreement must abide by the Constitution of Nepal.

 Projects under the US-funded Millennium Challenge Corporation (MCC) entered the implementation phase with the Entry into Force (EIF) only on August 30 last year.

The Millennium Challenge Account-Nepal (MCA Nepal), which has been entrusted with the responsibility of implementing the US grant projects worth As per the agreement with the US government, the MCC projects need to be completed within five years after the commencement of the EIF.

According to the initial agreement, the United States was supposed to provide US$ 500 million to Nepal for construction of cross-border transmission line and upgrading of roads while Nepal would have to contribute US$ 130 million for the project, expecting the total cost of the MCC project to remain at US$ 630 million.

But the 'supplemental agreement' over the MCC that was signed last year, demands the government to bear additional cost of US$ 67 million, seeking its total contribution of US$ 197 million for the enforcement of the agreement. In the beginning, Nepal was supposed to take up 20.63 per cent financial responsibility for the MCC project and now it has increased to 28.26 percent. The increased responsibility amount is equivalent to Rs 900 million.