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.