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.

US government decides to continue MCC in Nepal

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

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.

Decisive meeting of the coalition on MCC today been postpone till 5 pm

A decisive meeting is scheduled to be held today at 3 pm between the five parties of the ruling coalition to reach an agreement on MCC approval has been postponed till 5 pm.

After Prime Minister Deuba failed to present the MCC in the parliament due to disagreement among the coalition parties to present the MCC in the parliament meeting held yesterday, the meeting between the parties scheduled to be held at 3 o’clock today has been postponed till 5pm. It has been said that the meeting has been postponed after the meeting held this morning between Prachanda and Deuba at Prime Minister residence Baluwatar ended without any conclusion.
While the Nepali Congress insists on passing the MCC as it is, the Socialists and the Maoist Center are in favor of not passing the MCC under any circumstances without modification.

After the Supreme Court indicated that it would take up the case against the Speaker, dismissal of 14 MPs including Nepal and the case of Lalita Niwas land scandal, Nepal and Prachand agreed to pass MCC only after the impeachment motion against chief justice. But Nepal and Prachanda backfired on Deuba just after the impeachment motion filed against chief justice and withdrew the support from mcc .

Jaspa, who has been supporting Deuba in favor of MCC, has also changed its opinion since yesterday and left Deuba alone in MCC approval.
However, Baburam Bhattarai has been in favour of mcc. Rastriya Janamorcha, on the other hand, has been demanding the abolition of the MCC.

Meanwhile, Prachanda has already made public his decision to leave the government if the MCC is forcibly tabled in the parliament.
The Congress now appears to be alone in favor of the MCC within the alliance.
Even within the CPN-UML, MPs are divided on the issue of MCC.
However, Chairman Oli has said that he will support to pass the MCC on the condition of the Speaker’s resignation and the breaking of alliance.

Deuba prepared to break the alliance and pass the MCC

Prime Minister and Nepali Congress President Sher Bahadur Deuba is preparing to pass the MCC, even if it needs to break down the alliance.

It is learned that Deuba had discussed the alternative of the Speaker after the meeting of the House of Representatives scheduled to be held today was postponed by issuing a notice late last evening. While preparing to discuss MCC in today’s meeting, the Speaker had adjourned today’s meeting of the House of Representatives saying that there was no consensus within the alliance. It has been learned that Deuba has started discussions on the Speaker’s option after it was seen that the Speaker will become an obstacle in passing the MCC. Also, during a meeting between Deuba and Mahanta Thakur in Baluwatar some time ago, the Prime Minister had asked Thakur for help if needed to find an alternative to the Speaker.

Meanwhile, the opposition UML has been obstructing the parliament demanding the resignation of the speaker. In this case, the opposition UML seems to fully support the removal of the Speaker.
Civil society leaders are also protesting, saying that the speaker has been charged in the murder and that serious complaints and cases related to murder and immoral conduct are being considered against him by the Kavre District Police in the Constitutional Court and regular session of the Supreme Court. UML politburo member and former minister Mahesh Basnet has also informed that preparations are being made to register an impeachment motion against Speaker Sapkota.

Prime Minister Deuba is ready to pass the MCC even though the possibility of breaking the alliance is high if the speaker is removed. The UML has been saying that if Deuba breaks the alliance and remove the Speaker they will help to pass the MCC.

Returning of MCC is the best option: Bamdev Gautam

Bamdev Gautam, the coordinator of the CPN-Ekta National Campaign, said that it would be appropriate for the USA to withdraw the MCC project.

In a statement, Gautam, who is also a member of the National Assembly, said that the return of MCC would be the best option if the sovereign parliament of Nepal and Nepali psychology would be divided due to MCC.

Gautam also said that after the agreement reached with the MCC, serious partisanship towards the United States has started to arise in Nepal. Gautam suspects that the implementation of the agreement will jeopardize Nepal’s independence and sovereignty.

“If the MCC causes the Nepali people, Nepal’s political parties, Nepal’s sovereign parliament and Nepali psychology to be divided, its return may be the best option,” Gautam said in a statement.

Government prepares to submit MCC at parliament on February 9

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.

Demand for action against Prime Minister Deuba and Maoist Chairman Dahal

UML MP Bhim Rawal has demanded an investigation into the letter written by Prime Minister Sher Bahadur Deuba and UCPN (Maoist) Chairman Pushpa Kamal Dahal to the Millennium Challenge Corporation.

In today’s meeting of the International Relations Committee, Rawal said that the letter of intent written by a high-ranking official of the country to weaken Nepal’s diplomacy was highly objectionable. “This is an example of how diplomacy is being undermined and how the country’s self-esteem is being undermined,” he said.

“Is this how diplomacy works?” Rawal asked a question. What kind of diplomats had given such suggestions to Deuba and Dahal? He said that no leader had the right to write a letter saying that the agreement under consideration in the House of Representatives would be signed like this and that.

‘Do they have the right to do such such things over an agreement registered in the House of Representatives? Not listening to the people of your country but writing such a letter to another? This should be investigated and action should be taken, said Rawal.

Amendments to MCC agreement is not possible: Fatima Sumar

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

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

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

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.