Nepal: Parliament approves 500 million US Dollar grant aid with 'interpretative declaration'

Feb 28, 2022

Kathmandu (Nepal), Jan 28 (ANI): Nepal's House of Representatives has ratified 500 million US Dollar Grant Assistance-Millennium Challenge Corporation (MCC) pact along with "interpretative declaration". Parliamentary meeting of Sunday which ran till late hours adopted a 12-point declaration called "interpretative declaration" which includes the government's answers on questions raised in the parliament. A meeting of the ruling alliance which commenced earlier in the day at Prime Minister Residence had adopted the 12 points which clearly states that the parties will not consider MCC a part of US military strategy (IPS). Likewise, parties have also said that MCC Compact will not be above Nepal's constitution and laws. Adding, the MCC Compact will be taken only as financial assistance, and the audit should be done by the Office of the Comptroller and Auditor General of Nepal. The declaration also said that they would even revert the decision on the basis of political consensus. Prior to that, the ruling parties were in internal discussions on the Rift had risen high within the ruling alliance before the adoption of the declaration which nearly had brought alliance formed against the former Prime Minister KP Sharma Oli to an end. The US Government's MCC signed a USD 500 million compact with the Government of Nepal in September 2017 aimed at maintaining road quality, increasing the availability and reliability of electricity, and facilitating cross-border electricity trade between Nepal and India--helping to spur investments, accelerate economic growth, and reduce poverty.