MCC Deputy VP Visits Nepal as US Aid Resumes

KATHMANDU – John Wingle, Deputy Vice President of the Millennium Challenge Corporation (MCC) overseeing operations in Europe, Asia, the Pacific, and Latin America, arrived in Kathmandu on Monday, marking the first high-level MCC visit since the US resumed aid halted under the Trump administration.

During his stay, Wingle will meet senior Nepali officials, including Deputy Prime Minister and Finance Minister Bishnu Poudel, and attend the signing of contracts for two transmission line projects jointly funded by Nepal and MCC. These include the $77.48 million Ratmate–New Damauli line and the $77.03 million New Damauli–New Butwal line, part of the 297 km MCC Nepal Compact electricity project.

The Trump administration had paused MCC operations in early 2025 during a foreign aid review. In July, the US decided to continue the MCC Nepal Compact, giving Nepal three years to complete the projects or return unspent funds.

The MCC board will meet on August 21 to clarify the agency’s future. In Nepal, the $697 million MCC Compact—ratified in 2022—also includes road upgrades and construction of three new substations. Land acquisition and tree clearance remain key challenges to meeting the tight deadline.

No Agreement been made on State Partnership Program : Nepal Army

The Nepal Army has stated that it has not entered into any agreement with the United States regarding the State Partnership Program (SPP).

The Directorate of Public Relations and Information of the Nepal Army has issued a press release today stating that it has drawn its attention to the media reports about the SPP. The statement said that the Nepal Army had not entered into any agreement or understanding with the US military or the US government regarding the SPP and that there is no process to reach such an agreement in the coming days.

The statement also said that the military has always been clear and vigilant that no military agreement should be reached with anyone in the future that would adversely affect Nepal’s non-aligned foreign policy, Nepal’s unique geopolitical position and strategic sensitivities.

Meanwhile,the US embassy said that in 2015 and 2017, the then Chief of Army Staff Rajendra Chhetri had applied to join the SPP twice and the offer was accepted in 2019.