Confusion over the progress of projects in Nepal
The Millennium Challenge Corporation (MCC) has indicated that it will cut its budget heavily. MCC has indicated a reduction in the budget to be spent in 2026. According to the details released by MCC, it is prepared to spend 224 million dollars in 2026. While in 2025, MCC allocated a budget of 930 million US dollars.
MCC, which is considered as the main competitor with China's Belt and Roll, has been spending a large amount of money in different countries of the world. Millennium Challenge Corporation MCC is committed to economic growth and poverty alleviation in various developing countries Grants have been provided.
has invested in 47 countries by 2024, claiming to have benefited around 380 million people. His investment is focused on physical infrastructure, policy reform, and institutional strengthening.
Nepal had signed the MCC compact agreement in 2074. But the agreement became very controversial in Nepal, and on 15th February 2078, Parliament approved the MCC compact agreement with a 12-point explanatory declaration. After that, the special implementation of MCC started one and a half years ago.
MCC was investing in electricity and road infrastructure in Nepal under the US grant. The goal was to build 300 kilometers of electricity transmission lines and substations and upgrade and repair 77 kilometers of roads by spending 500 million US dollars and 197 million dollars in Nepal.
After Donald Trump became the President of the United States, this program was initially postponed for three months. Even now, the work of MCC has not progressed effectively. However, the government has planned to receive about 6 billion in grants from the MCC in the coming year 2082/83 and spend that budget.
According to the commitment made by MCC officials in the Ministry of Finance, 5.68 billion subsidy is coming in that financial year. It is expected that the subsidy will be paid directly, the government has kept it in the budget.
