Nepal Rastriya Dainik
April 11, 2026 ,
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MCA-Nepal Signs Transmission Line Contracts Under MCC Compact

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kathmandu -Millennium Challenge Account (MCA) Nepal has signed two major contracts to advance the electricity transmission project under the Nepal Compact, a joint investment between the governments of Nepal and the United States.

MCA-Nepal awarded the Ratamate–New Damauli transmission line construction contract to Angelic Skipper Joint Venture and the New Damauli–New Butwal transmission line construction contract to Waiba–Salasar Joint Venture. The projects will involve the design, installation, testing, and operation of 180 km of 400 kV transmission lines.

The agreements were signed in the presence of officials from Nepal’s Ministry of Finance, Nepal Electricity Authority, the acting vice president of the MCC, the MCC Resident Country Director’s office, and the US Embassy in Nepal. MCA-Nepal Executive Director Khadga Bahadur Bista signed on behalf of MCA-Nepal, alongside representatives from the two companies.

The MCC Nepal Compact includes projects to strengthen electricity transmission and road maintenance, boost cross-border energy trade, and improve Nepal’s transport network connectivity.

Following a recent review of US foreign assistance, the MCC Nepal Compact was reactivated with renewed commitment from both governments.

MCC Deputy VP Visits Nepal as US Aid Resumes

MCC Deputy VP Visits Nepal as US Aid Resumes

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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.

US government decides to continue MCC in Nepal

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Kathmandu – The US government has decided to continue the Millennium Challenge Corporation (MCC) compact being implemented in Nepal.

The US government’s foreign assistance review has recommended continuing the implementation of the MCC Nepal agreement, a spokesperson for the US Embassy in Nepal said. He also said that they have informed the Nepal government about this decision.

Dhaniram Sharma, Chief of the International Assistance Coordination Division of the Ministry of Finance, also said that the US government has informed about the continuation of MCC in Nepal.

On Friday, the MCC headquarters issued a statement stating that the work related to the foreign assistance review of the MCC portfolio has been completed.

“This review shows that the MCC portfolio is consistent with the Trump administration’s America First foreign policy and that MCC will continue to work to make America even safer, stronger, and more prosperous,” the MCC statement said.

MCC also stated that other details will be revealed next week based on the process of the MCC Board of Directors and discussions with the US Congress and partner countries. The MCC statement indicates that most of its programs will continue.

Earlier, on 18 Ashad, the Millennium Challenge Account (MCA)-Nepal had also issued a statement indicating that the MCC project in Nepal would continue.

Meeting of the Parliament to be held today at 1 pm: Agreement within alliance to table the MCC

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A meeting of the House of Representatives is scheduled to be held at 1 pm today.

According to the Federal Parliament Secretariat, Prime Minister Sher Bahadur Deuba will submit the third annual report of the National Inclusion Commission for the fiscal year 2077/078.
However, the leaders of the coalition have said that the issue of tabling the MCC agreement will also be included in the agenda of the Parliament sitting from the work arrangement committee meeting to be held at 11 am today.
The possibility of MCC being tabled in today’s Parliament sitting has become almost sure after Prachanda and Nepal agreed to allow MCC to be tabled in the parliament.

Government prepares to submit MCC at parliament on February 9

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The government has informed the Speaker of the House of Representatives, Agni Prasad Sapkota, that it is preparing to submit the US Grants Assistance Millennium Challenge Corporation (MCC) Compact Agreement to the Parliament.

Stating that the government is ready to submit the MCC agreement, it has urged Speaker Sapkota to expedite the necessary process. After receiving this news, Speaker Sapkota had prepared accordingly and consulted with some people close to him. Earlier on Sunday, Minister for Law, Justice and Parliamentary Affairs Dilendra Prasad Badu met Speaker Sapkota and briefed him about the government’s decision to present the MCC agreement in the parliament.

According to sources, Speaker Sapkota said that he would not obstruct the process of submitting the MCC agreement to the parliament. However, he argued that it would be better to take a decision through discussion than to table the MCC amidst the obstruction in the parliament.

Meanwhile, the MCC headquarters on Sunday wrote to Prime Minister Sher Bahadur Deuba and CPN (Maoist Center) Chairman Pushpa Kamal Dahal to approve the Nepal Compact Agreement by February 28.

Amendments to MCC agreement is not possible: Fatima Sumar

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The US Agency for International Development (MCC) has stated that no amendment to the agreement with Nepal is possible. While the ruling coalition is debating the option of amending the agreement before it is approved by the parliament, Fatima Sumar, vice-chairperson of the MCC headquarters’ department of compact operations, has urged Nepal to go for the option of ratification and implementation of the agreement.

“I would like to remind that the decision to recognize MCC as an international agreement must be passed by the Parliament and by the Ministry of Law of Nepal. The agreement was signed by the Government of Nepal on September 14, 2017, four years ago, after agreeing on all the provisions. At present, it is not possible to amend any of the points,” she said.

While discussing the US condition that the MCC agreement must be ratified by February 28, Sumar said that the deadline was set by Prime Minister Deuba and UCPN (Maoist) Central Committee Chairman Pushpa Kamal Dahal. “The prime minister (Deuba) and the chairman (Dahal) in a letter dated September 29 have expressed their commitment to ratify the agreement within five months, We want to see the agreement ratified within that day,” she said.

She also said that the MCC board would have the right to decide on the future of the agreement if it is not approved by the parliament of Nepal within the stipulated date. According to her, the next board meeting on March 22 will take a decision on the issue. The MCC board has the right to reject the 500 million grant agreement from the United States if Nepal does not ratify it. The decision of the board will end the cooperation between Nepal and MCC, ‘said Sumar.

An agreement was reached between the MCC and the Government of Nepal on 29 Bhadra 2074 BS for a grant of USD 500 million for the development of energy and road infrastructure. A year and a half after the Deuba-led government signed the agreement, the cabinet led by KP Oli had decided to submit the agreement to the parliament for approval on Magh 25 2075 BS. The ruling parties have expressed dissatisfaction saying that the grant agreement was passed by the parliament like an international treaty and tried to go beyond the prevailing law.

Speaker’s  Alternative may be sought in case of Obstacles to pass MCC: PM Deuba

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Prime Minister Deuba has said that if the Speaker Agni Prasad Sapkota obstructs the MCC in the Parliament, the alternative of the Speaker could be consider.

During a meeting between Deuba and Democratic Socialist Party (LOSPA) Chairman Mahanta Thakur at the PM’s residence in Baluwatar today, Deuba said that (LOSPA) would have to play an important role in passing the MCC. During the meeting, Prime Minister Deuba said that if Speaker Sapkota obstructed the MCC in the parliament, an alternative to the speaker need to be consider and the Democratic Socialist Party should cooperate for that.
In response, Thakur said that his party is positive about passing the MCC but its role would be clear only if the government came up with a concrete decision first.

The MCC agreement I signed is different from the current MCC agreement: Gyanendra Bahadur Karki

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Jhala Nath Khanal claims that nine supplementary MCC agreements of more than 800 pages were hidden during the Oli’s government

Gyanendra Bahadur Karki has said that the MCC agreement made by him as the then Finance Minister is different from the current MCC agreement.

Communications Minister Gyanendra Bahadur Karki has said that the MCC agreement he signed when he was the finance minister is not the same as the current MCC agreement. “Despite the agreement I made in 2017, I don’t know why another agreement was made in 2019 and in whose interest it was done,” Karki said.
The MCC agreement signed by me on behalf of Nepal as the then Finance Minister of Nepal and Jonathan Nash, acting CEO of MCC, on September 14, 2017, was not about ratifying it from the Parliament. Minister for Communications Karki said that Yuvaraj Khatiwada had signed the program implementation agreement on September 29, 2019, and added the provision to be ratified by the parliament.

In the report prepared by the MCC study task force formed under the government of Prime Minister Oli, it is mentioned that, Finance Minister Dr Yuvaraj Khatiwada signed the implementation agreement with MCC Operations Vice President Anthony Belcher in September 2019 without any hesitation, which is inconsistent with some provisions of the original agreement or even to the detriment of Nepal.

Meanwhile, leader Jhala Nath Khanal has claimed, nine supplementary agreements of the MCC consisting more than 800 pages were hidden during the government of Prime Minister Oli. During Prime Minister Oli’s government, a three-member MCC study task force was formed under the coordination of Jhala Nath Khanal with leaders Bhim Rawal and Pradip Gyawali. Current Prime Minister Deuba has also formed a three-member MCC study task force comprising Jhala Nath Khanal, Narayan Kaji Shrestha and Gyanendra Bahadur Karki.
Leader Jhala Nath Khanal has said that the present MCC study task force will study the remaining supplementary agreement and submit a report.

Jhala Nath Khanal accuses the Oli government of hiding the MCC subsidiary agreement. Click the link to read this https://nepalnationaldaily.com/877/

Under no circumstances will the MCC be passed in the status quo: Prachanda

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Chairman of the CPN-Maoist Center Pushpa Kamal Dahal has said that the MCC agreement should not be passed in the status quo. In a political report presented at the closed session of the 8th National General Convention on Monday, Dahal said that the MCC will be passed only after revision and amendment.

At the inaugural session of the UCPN (Maoist) General Convention on Sunday, Prime Minister Sher Bahadur Deuba claimed that the MCC was in the national interest and urged the people to argue only after studying the MCC agreement.However, Dahal said that “MCC project will be taken forward only after the project is modified and revised.” Under no circumstances will it be passed in the status quo.

All party meeting convened: Obstruction of Parliament and MCC to be discussed

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An all-party meeting is scheduled to be convened at 4 pm on Sunday to end the ongoing impasse in the parliament and submit a decision to the MCC. All political parties in the parliament will be called for the all-party meeting.

The CPNUML has been obstructing both houses of the federal parliament, while the United States has been pressuring the parliament to pass the MCC agreement. However, the agreement has not been able to move forward as there are two divided gropus on MCC among the ruling parties

On the other hand, CPN (Unified Socialist) Chairman Madhav Kumar Nepal has said that the MCC will not be allowed to pass by breaking the ruling coalition. Citizens are also having number of protests on streets everyday all over the country criticizing the government on the issue of MCC.