Nepal signed an agreement with US government to get grant worth USD 500 mn

Vastavam web: Nepal has signed an agreement with the US government’ Millennium Challenge Corporation to receive a grant worth USD 500 million in next five years to spur private investment and economic growth to reduce poverty in the country.Nepal would contribute another USD 130 million to support the Millennium Challenge Corporation (MCC).Nepalese Minister of Finance Gyanendra Bahadur Karki and MCC Acting CEO Jonathan Nash signed the agreement in this regard at the State Department.”The compact recognizes Nepal’s vast progress and ongoing efforts to establish the rule of law and implement democratic institutions. The Board of Directors of the Millennium Challenge Corporation first selected Nepal for a compact in December of 2014,” he said.
Sullivan said Nepal’s progress over the past few years, both politically and economically, represents a vital turning point for the country.By holding its first elections under a new constitution, Nepal has signaled the beginning of a new democratic age.”But this is more than just a grant. It’s a plan for investment jointly developed to address the inadequate supply of electricity in Nepal and the high cost of transportation in that country. Together, we will work to improve the availability of electricity and make road transportation safer and more affordable,” the top American diplomat said.
Karki said this compact of USD 500 million, combined with the Government of Nepal’s commitment of USD 130 million, will surely create a lasting impact on Nepal’s sustainable development for generations to come.Recognising the several decades of cooperation between two countries in socioeconomic development programs, the Finance Minister said over the years, America has supported Nepal in building peaceful, prosperous, and a democratic society.It will also facilitate increased electricity trade with India, a strategic partner, and activities that will strengthen sector governance, increasing transparency, efficiency and competition in Nepal’s power sector.
In the transportation sector, the compact includes investments that will strengthen the road maintenance regime, which is particularly important to the movement of goods and people in a landlocked mountainous country such as Nepal, he said.According to MCC, the Electricity Transmission Project is designed to transform Nepal’s power sector by expanding and strengthening the high voltage electricity transmission network to support new investments in generation.”MCC’s Nepal Compact is designed to spur private investment and economic growth to reduce poverty. MCC s investments will also support regional energy connectivity in South Asia by strengthening Nepal’s power sector and facilitating electricity trade with India,” State Department Spokesperson Heather Nauert told reporters at her daily news conference.