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  • Nepal to Receive Biggest Foreign Grant from US | Nepali Sansar
    Thursday 28th March 2024

    Nepal to Receive Biggest Foreign Grant from US

    News

     
    Nepal to Receive Biggest Foreign Grant from US

    August 3, 2017

    In a major move, the Government of Nepal has decided to accept a foreign grant of Rs 51.38 billion from the United States’ Millennium Challenge Corporation (MCC).

    According to Prime Minister Sher Bahadur Deuba, this grant to be received under the ‘compact programme’ pledged by the US agency, will be used for the development of road and electricity transmission line in Nepal.

     

    Through this fund, the Nepal Government plans to extend country’s electricity transmission network by around 300 km and roads up to 300 km over the next five years.

    Under the compact programme, MCC will fund USD 500 million and the Nepal Government will add an additional USD 130 million, bringing the total investment to USD 630 million. The final grant agreement is expected to be signed before the end of US’ current fiscal year in September.

    Under the agreement, the funds will go back to the United Sates if the Nepal Government fails to complete all the related projects within five years from the date of implementation.

    Deuba took this decision in a cabinet meeting held at Office of the Prime Minister and Council of Ministers in Singha Durbar on Thursday.

    August 3, 2017 |

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