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.

The post Nepal All Set to Receive Its Biggest-ever Grant from US appeared first on Nepali Sansar.

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.

The post Nepal to Receive Biggest Foreign Grant from US appeared first on Nepali Sansar.