September 04, 2017
Nepal is all set to secure a major grant of USD 500 million (approximately Rs 51.5 billion) from the United States for its infrastructure development.
Both the countries are expected to sign an agreement in this regard on September 14, 2017.
This grant, for the construction of transmission lines and maintenance of road infrastructure in Nepal, is part of the USD 630 million worth programme designed by Millennium Challenge Corporation (MCC) for Nepal.
Towards implementation, the Government of Nepal has also announced its contribution of USD 130 million, the biggest contribution by any single largest up-front country in the history of MCC.
This financial support from US, is the biggest-ever grant Nepal is receiving from its single development partner country.
Using the fund, the Government of Nepal aims at extending its electricity transmission network by around 300 km and maintain roads spread across 300 km.
The Nepali Government also aims at strengthening its energy and transport infrastructure through this fund, to attract more domestic and foreign investment.
Nepal was selected for the MCC programme in December 2014, in recognition of its efforts to establish rule of law and democratic institutions and its strong performance on MCC’s policy scorecard. MCC is an independent US agency that works for control of global poverty through economic development.
All projects under the compact programme should be completed within five years from the date of implementation, in absence of which, US will take back its funds.