The United States and Nepal signed the Compact in September 2017, and Nepal has committed to ratify the deal by September 2019.

However, the Nepali Government has missed the deadline as the ruling Nepal Communist Party (NCP) is largely divided over the issue. While Prime Minister KP Sharma Oli has been pressing for its endorsement, NCP Chairman Pushpa Kamal Dahal has sought some amendments. A majority of NCP leaders claim that certain clauses of the agreement are against Nepal’s national interest.

But, recently, a month ago, both the party chairs had agreed to seek amendments in the Compact before the Federal Government endorses it.

Amid the growing uncertainties surrounding the ratification of the MCC Compact, the US Government has informed that it is prepared to clarify the inquiries from the Nepali Government about the deal.

“MCC is prepared to respond to inquiries from the government of Nepal to support and update their understanding of the compact’s clauses,” said Anna Richey-Allen, Spokesperson at US Embassy in Kathmandu.

“Prior to signing the MCC compact in 2017, both the Nepali government and the MCC fully reviewed and agreed upon each provision during formal negotiations,” reminded Richey citing the claims that certain clauses are against Nepal’s national interest.

He also warned that, though accepting the grand is Nepal’s choice, the availability of the funding is no longer an open-ended offer.

“In order for the compact to be viable, it is important for the Nepali Government to ratify the compact and complete the remaining preliminary activities for the project as soon as possible,” he added.

Nepal will receive USD 500 million grant under the MCC Compact to build electric transmission infrastructure and perform road maintenance activities and directly benefit 23 million Nepalis.

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The meeting was held at the PM’s residence in Baluwatar on February 4, 2020.

He asserted that the three-member committee will submit a report on the Compact within a week.

Later, when asked about his health, PM Oli said that he will soon undergo kidney transplantation.

“MCC Compact offers a valuable opportunity to Nepal and there is no reason for the country to reject the USD 500 million grant,” PM Oli said.

Chaos Around MCC Compact

There are many speculations and criticism about the Compact among the Nepali citizens and political leaders, saying that the conditions in the Compact are against the spirit of the Nepali Constitution.

They exclaimed that MCC is a part of Indo-Pacific Strategy or linked to a military alliance.

Later, the US Embassy in Nepal has published 10 key facts about MCC Compact to clear the confusion about the Compact on January 17, 2020.

The US Government has committed to invest USD 500 million under MCC Compact to fortify Nepal’s economic growth and stability.

Nepal Government has proposed and decided the Electricity Transmission Project and the Transportation Project for MCC program.

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He said this to the NCP (Nepal Communist Party) lawmakers during a meeting in the National Assembly on January 20, 2020.

Gyawali ruled out the suspicions of the NCP lawmakers and leaders, who exclaimed that MCC  is a part of Indo-Pacific Strategy or linked to a military alliance.

He told that MCC agreement is aimed at increasing investments and accelerating infrastructure development in the country.

Earlier, in view of the suspicions raised by the Nepali leaders and citizens about MCC, the US Embassy in Nepal has published 10 key facts about MCC compact.

The Embassy said that MCC focuses mainly on the economic development of Nepal through transparency and true partnership.

Here’s the key facts on MCC:

The Embassy has published the Key facts about MCC in its official website, https://np.usembassy.gov on January 17, 2020.

Nepal Government has proposed and decided Electricity Transmission Project and Transportation Project for MCC program. The US Government has committed to invest USD 500 million under MCC compact to fortify Nepal’s economic growth and stability.

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But this time to take on the Marylebone Cricket Club in a 50-over match on August 24, 2020.

This is not the first time that Nepal and MCC are playing together. Earlier in 2016, Nepal had defeated MCC by 41 runs.

Nepal had also played a triangular T20 tournament with MCC after winning ODI status, upon recommendation from The Netherlands. That match saw Nepal and The Netherlands sharing the trophy.

Meanwhile, MCC had also visited Nepal earlier this month for six matches including two 50-over matches, a three-day first-class match and three T20s.

MCC’s charitable wing is also actively undertaking a project to distribute cricket kits, lay nets and skill development training to players and coaches in Pokhara, Nepal.

Can’t wait..!! @HomeOfCricket https://t.co/Xl7wxGcWws

— Paras Khadka (@paras77) November 27, 2019

Wish the cooperation will go a long way ahead!

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Young Sandeep, 17 gets to be among the ‘big men of cricket’ who include Eoin Morgan, Shahis Afridi, Tamim Iqbal, Dinesh Karthik, Rashid Khan, Mitchell McClenaghan, Shoaib Malik, Hardik Pandya, Thisara Perera and Luke Ronchi.

Expressing his joy on being included in the ICC World XI, he said, “I am privileged to have been chosen to be part of the ICC World XI against the Windies. It is an honor for the entire country and passionate followers of Nepal cricket, as well as an indicator that we are making our mark on the international game.”

“Training, sharing the dressing room and playing with some of the trend-setters who we saw on television while growing up is something I look forward to. This is an opportunity for me to learn and improve, and I am committed to cashing in on this.”

“What can I say about Lord’s, it’s the Home of Cricket, it’s a complete history of cricket and a dream venue for any cricketer. To play there in 2016 was a memorable occasion, which I look forward to reliving later this month. I hope I will continue to get opportunities in the future which, in turn, will help me improve my skills as well as my country to strengthen its position on the world cricket map.”

The Birth of a Star

Lamichhane’s journey to the ‘Big Field’ began when Nepal coach Pubudu Dassanayake recognized the young lad’s talent. He first caught sight of the boy’s potential when he saw him playing in the ICC U19 Cricket World Cup 2019 where he took a whooping, 16 wickets.

In that historic game between MCC and Nepal in July 2016, Lamichhane had a score of 1 for 25, while his team scored a 217 for eight. Nepal gave MCC a smashing defeat as they bowled their opponents at a 176 in 47.2 overs.

Lamichhane’s Laurels/Achievements

In February, this year, Lamichhane (also famous as the wrist-spinner) took 17 wickets in six ICC World ‘Cricket League Division Two’ matches in Namibia.

Later in March, he claimed 13 wickets in the ‘ICC World Cup Qualifier’ match and landed Nepal at the 8^th position to earn the ODI status till 2022.

Since then there was no looking back. Lamichhane’s performance kept drawing attention from key persons. When the IPL 2018 auction was in progress, Lamichhane became the first Nepal player to be a part of the IPL League, he was selected for the Delhi Daredevils.

His performance made spectators see why he had been selected for the IPL 2018. He played a one for 25 in his first match against Royal Challengers, Bangalore.

On 17^th May, Sandeep was conferred with the title of ‘Best Youth Player’ as part of the Pulsar Awards 2018 and was awarded the ‘Youth Player of the Year Award’ in the 15^th edition of the Awards ceremony at the Army Officer’s Club.

On an End Note:

We wish Sandeep Lamichhane good luck for all his future endeavors. We hope to see him bring home more and more laurels and make Nepal more prominent through his performance on the field.

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• Lamichhane’s Brilliance Keeps Nepal’s World Cup Hopes Alive

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The United States and Nepal have finally signed the most-awaited deal that is expected to help Nepal in its overall development

The US State Department Spokeswoman Heather Nauert made an official announcement in this regard, yesterday.

The US agency Millennium Challenge Corporation (MCC) Acting CEO Jonathan Nash and the Nepali Minister of Finance Gyanendra Bahadur Karki signed the new USD 500 million compact agreement at Washington DC, informed an official release by the US State Department.

“Today, as we sign this USD 500 million MCC compact with Nepal, we are celebrating a new chapter in the US-Nepal partnership,” said Nash.

“As we celebrate the 70th anniversary of US-Nepal relations, I am grateful we can point to this MCC compact as a clear demonstration of our strong partnership,” said the Deputy Secretary of State John J. Sullivan in his address.

Meanwhile, the Nepali minister affirmed that this deal will surely create a lasting impact on Nepal’s sustainable development for generations to come.

According to the release, this is the first compact for the Trump administration and also in South Asia, and includes the largest upfront contribution by any partner country (in MCC’s history).

“A stable and economically-growing Nepal is in the best interest of not just the people of Nepal, but also the region and the United States,” said the Department in its release.

Apart from MCC funding, the Nepali Government will also be adding an additional USD 130 million to this five-year grant.

Nepali Power Sector to Be Strengthened

This deal with MCC is the biggest-ever grant Nepal is receiving from its single development partner country. The agreement aims at achieving infrastructure development in Nepal.

Besides boosting private investment and economic growth to reduce poverty, this deal is expected to enhance regional energy connectivity in South Asia by strengthening Nepali power sector and facilitating related trade with India.

Development of high-voltage power transmission lines across 300 km and road maintenance covering 300 km distance are among the key projects to be taken up under the agreement.

A joint analysis by Nepal and MCC says that the deal will benefit around 23 million population.

According to Baikuntha Aryal, Head of the International Economic Cooperation Coordination Division, the allotted grant will go back to the US if the projects under the agreement are not implemented within 5 years from the starting date.

MCC is an US agency committed to fight global poverty (in select poor countries) and ensure good governance for the overall economic growth.

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Nepal has been selected for one of the most high-profile development projects of the United States in Indo-Pacific, informed a top US diplomat.

This socio-economic project aims at boosting regional stability, connectivity and economic growth in Indo-Pacific.

Alice Wells, Acting Assistant Secretary of State for South and Central Asian Affairs, made an official statement in this regard at a congressional meeting held in Washington, recently.

“Nepal has been selected for one of the US most high-profile projects to increase regional connectivity within the Indo-Pacific. If these efforts succeed, Nepal will serve as a model for other fragile post-conflict democracies,” reads a statement by Wells.

Wells also told the Congress that US will help Nepal in building a stronger democracy that could address persistent conflicts and promote economic growth and regional stability.

“In addition to supporting a stable, democratic government that respects the rule of law, the United States promotes investor-friendly energy development and regional connectivity,” she added.

These statements are coming ahead of the Wells’ scheduled meet with the House Foreign Affairs Subcommittee on Asia and the Pacific on Maintaining US Influence in South Asia: The 2018 Budget.

Other Major Projects in the Pipeline

The US agency Millennium Challenge Corporation (MCC) has also committed for its first South Asia compact agreement with Nepal.

Under the pact to be signed later in this month, MCC will be providing a grant of USD 500 million to Nepal, making it the biggest-ever grant for Nepal from any of its single partner countries. This project will focus on infrastructure development in transport and energy sectors of Nepal.

Apart from that, the US foreign assistance request of USD 38.8 million also aims at improving Nepali democracy and accountability and transparency within Nepali Government.

As a whole, for 2018, the US assistance measures aim at strengthening education and health services, along with efforts to support long-term sustainable economic growth.

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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.

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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.

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U.S. Government’s Millennium Challenge Corporation (MCC) has announced plans for investing $500 million in Nepal for increasing the regional energy connectivity in South Asia and enhancing the business opportunities between the countries in the region.

The investment is also aimed at achieving an improvement in the power sector governance and the road maintenance regime in Nepal. It would finance the construction of high voltage power lines across a distance of 300 kilometers covering approximately one-third of Nepal’s length, three large substations and the Nepali portion of the second high voltage cross-border transmission line.

According to Fatema Z. Sumar, MCC Regional Deputy Vice President for Europe, APAC, and Latin America, the total investment in the project is likely to be $630 million with a contribution of $130 million from the Nepal government.

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