The United States has decided to close the Millennium Challenge Corporation (MCC) aid program. President Donald Trump and his billionaire adviser Elon Musk closed the MCC as part of an effort to curb the misuse of American taxpayer money.

The MCC, established two decades ago to reduce poverty and promote economic growth around the world, has been decided by the 'Department of Government Efficiency (DoG)' under the leadership of billionaire Musk. Even after this decision, the future of the project in Nepal is in doubt. 

MCA Nepal and the Nepal government have said that they have not received any official information about the decision of the American government. The international news agency Reuters said that the current program in Nepal will not stop. Citing an official of MCC, Reuters wrote, "All other works have been ordered to stop, except for some ongoing construction projects including power transmission lines in Nepal and Senegal, water treatment plants in Mongolia and schools in Ivory Coast."

President and Finance Secretary of MCA Nepal Ghanshyam Upadhya said that no official information was received on Thursday regarding the closure of the MCC program. "We have only seen and read what came in the media, no formal information has come," he said, "We could not say anything without formal information." He also informed that they are working regularly as there is no information about whether the program has been closed. 

On the other hand, the American media has mentioned that the US is preparing to put MCC employees on administrative leave from May 5. According to Reuters, the organization informed the employees about the closing of the MCC by email on Wednesday. In Wednesday's meeting, MCC employees were informed that all programs of the project will be closed and the number of employees will be reduced to a minimum. Similarly, in the email, it has been mentioned that all MCC programs will be closed and the number of employees will be reduced, according to Reuters.

"Seriously think about what's best for you and your family, that's more important than your commitment to this organization," Kye Kim, a senior MCC official, told employees, "The future of the organization looks very bleak." MCC has been investing in infrastructure such as electricity supply and road construction in partnership with developing countries. Currently, its annual budget is about 900 million US dollars. 

The Trump administration has also disbanded the American Assistance Mission (USAID), which had previously given about 40 billion dollars in annual aid, as a result of which 34 programs operated by the US grant in Nepal have been cancelled. The program of 320 million 49 million 29 thousand 516 US dollars (about 45 billion 43 million rupees) operated in Nepal under USAID has been cancelled. 

 On February 2, MCC notified the Ministry of Finance via email to stop the program for 80 days. But MCA was asked to conduct the program in the first week of March. "The US government has given permission to proceed with some of the activities under the MCC Nepal Compact, this permission does not indicate any definite results from the review," said a notice issued by MCA last March. After the notification, the projects under MCC continued.

According to the agreement between Nepal Government and MCC on 29 August 074, the project implementation started from 13 August 080. In the initial agreement, it was mentioned that the US government would bear 500 million dollars and the Nepalese government would bear 197 million dollars for the 697 million dollar (about 92 billion) project. Last December, the US government announced an additional $50 million for the project.

MCA Nepal signed an agreement with Transrail Lighting Limited on 14 August 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. The initial phase of the transmission line is being completed with a target of 21 months. According to MCA Nepal, 167.9 million rupees has been paid to Transrail Lighting Company for the Butwal-Gorakhpur transmission line.

Detailed survey, geo-technical investigation and preliminary work of site construction of new 400 KV capacity Damauli substation under construction in Tanahun is going on. An agreement was signed on 16 July 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 with India's Techno Electric and Engineering Company Limited on 1 June 2081 to build a 400 KV Ratamate substation at Nuwakot. The substation was built within 39 months for 50.16 million US dollars. According to MCA Nepal, the preparations before proceeding to the design and construction of the substation are being finalized and the company has been paid 6997,732 rupees so far.

An agreement was signed with Linkson India on 27 Baisakh 2081 to construct 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.