Projects under the Millennium Challenge Corporation (MCC) of US grant aid have continued for the time being. But as the 90-day review period continues, there is still confusion about the continuation of the program. The Millennium Challenge Account Nepal Development Committee (MCA Nepal) has said that the US government has given permission to proceed with projects under the MCC.

"The US government has given permission to proceed with some of the activities under the MCC Nepal Compact, this permission does not indicate any specific results from the review," the statement issued on Friday said. 

Following the order of US President Donald Trump, the project of Nepal was confused due to the steps taken by MCC. On February 2, MCC sent a letter to the Government of Nepal and informed that the payment would be stopped. Now the same postponed project is going to start again. 

Even in the latest notification, it is not clear whether the projects under MCC will be completed or not. "MCA Nepal is closely coordinating with the Government of Nepal and the Millennium Challenge Corporation to ensure that it does its part while awaiting updates on the US government's review of foreign aid," MCA said.

MCA Nepal is a program under MCC. According to the agreement signed between the Government of Nepal and MCC on August 29, 2007, the implementation of the project started from August 13, 2008. In the initial agreement, it is mentioned that the American government will spend 500 million dollars and the Nepalese government will spend 197 million dollars in the 697 million dollars (about 92 billion) project. Last December, the US government announced an additional $50 million for the project.

Under MCA Nepal, 18 km Butwal-Gorakhpur transmission line, 400 kV new Butwal substation, 400 kV new Damauli substation and 400 kV Ratamate substation are under construction. According to MCA Nepal, the proposal received by calling for 297 km transmission line and 40 km contract from Dhankhola to Lamahi is being evaluated.

MCA Nepal signed an agreement with Transrail Lighting Limited on August 14, 2081 for 12.23 million 60 thousand US dollars to build an 18 km transmission line in Nepal under the Butwal-Gorakhpur international transmission line. According to MCA Nepal, the initial phase of the transmission line is being completed in 21 months. According to MCA Nepal, it has paid 167.9 million 32 thousand 962 rupees to Transrail Lighting Company for the Butwal-Gorakhpur transmission line. 

Detailed survey, geo-technical investigation and preliminary work of site construction of the new 400 KV capacity Damauli substation under construction in Tanahun is underway. An agreement was signed on July 16, 2081 with Techno Electric and Engineering Company of India for the construction of the new Damauli substation. 52 crore 21 lakh 5 thousand 354 rupees have been paid to the company that got the contract. 

An agreement was signed on June 1, 2081 with India's Techno Electric and Engineering Company Limited to build a 400 KV Ratamate substation in Nuwakot. The substation was built within 39 months for 50.16 million US dollars. According to MCA Nepal, work is being done to finalize the preparations before proceeding to the design and construction of the substation and the company has been paid Rs 6997,732 so far.

An agreement was signed with Linkson India on 27 Baisakh 2081 to build a new 400 KV Butwal substation at Nawalparasi (Bardghat Susta West). The substation, which aims to be completed within 39 months, was contracted for 35.5 million 10 thousand dollars. According to MCA Nepal, 47 crore 27 lakh 70 thousand 576 rupees have been paid to the company that got the contract.