KATHMANDU: The United States has granted a specific exception to its 90-day pause on foreign assistance, allowing the full implementation of the Millennium Challenge Corporation (MCC) Nepal Compact to continue.
The decision comes as part of a broader U.S. government review of its foreign aid programs worldwide.
According to a statement issued by the U.S. Mission in Nepal, Secretary of State Antony Blinken approved the exception in February, enabling Nepal to move ahead with MCC-funded infrastructure projects despite the temporary suspension of other American assistance initiatives.
“The MCC Nepal Compact is authorized to continue with full implementation,” the statement reads, emphasizing the U.S. government’s ongoing commitment to the bilateral partnership with Nepal. “MCC and the U.S. Mission in Nepal continue to engage stakeholders in support of a constructive outcome of the review.”
The USD 500 million MCC Nepal Compact, which focuses on electricity transmission and road maintenance, has faced political debate in Nepal but remains a cornerstone of American economic assistance to the country.
The compact is being implemented in coordination with Nepal’s Ministry of Finance and the Millennium Challenge Account Nepal (MCA-Nepal), a government agency set up to manage the project.
Officials say efforts are being made to ensure the program aligns with both U.S. and Nepali priorities, particularly in areas such as transparency, sound governance, effective delivery, and risk management.
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