The US-funded Millennium Challenge Corporation (MCC) project has entered into force from mid-August. The Millennium Challenge Account Nepal (MCA Nepal), the body responsible for implementing the agreement, has made final preparations to implement the agreement approved by the Parliament. While the MCC is in the implementation phase, there are still some obstructions in the land acquisition process. Due to this, the cost of the project is likely to increase.

There is also doubt if the project will be completed within five years. If the MCC project is not completed within five years, the Government of Nepal will have to bear the responsibility for the rest of the work.

If it is not completed on time, there is a risk that the government will have to bear the financial burden and other responsibilities later, said a senior official of MCA Nepal. The process for land acquisition has progressed in Chitwan and Nawalparasi but obstacles remain in some places.

Executive Director of MCA Nepal, Khadga Bahadur Bista said that the land acquisition process has progressed in nine districts. According to him, there is problem only in about 2 kilometres stretch of Kathmandu district. There is a dispute between the Nepal Electricity Authority and the locals. 

The process of land acquisition in 313 kilometres long area of the other nine districts has already progressed. The transmission line will touch 10 districts namely Kathmandu, Sindhupalchok, Nuwakot, Dhading, Makwanpur, Chitwan, Tanahun, Palpa, Nawalpur and Parasi. After completing the compensation work, it is ready to go into full implementation in some of these districts. The government has allocated a budget of Rs 10.84 billion to MCA Nepal for the current fiscal year.

The government will contribute Rs 2.21 billion while the MCC will fund Rs 8.63 billion. The Government of Nepal had reached an understanding with the US government in 2017 to undertake the MCC project which would cover construction of cross-border transmission lines and road expansion works.