KATHMANDU: The US government’s Millennium Challenge Corporation (MCC) has granted permission to temporarily resume the MCC project in Nepal.
The U.S. government has allowed select work for activities under the Nepal Compact to resume while the U.S. foreign assistance review is underway, according to MCA-Nepal.
This allowance does not indicate any specific outcome of the review.
The work includes launching critical procurements and necessary operational activities.
MCA-Nepal is managing the resumption of activities and remains committed to transparency.
MCA-Nepal is closely coordinating with the Millennium Challenge Corporation and Government of Nepal to ensure compliance while awaiting updates on the foreign assistance review, according to MCA-Nepal.
However, as the 90-day review period is still ongoing, the long-term continuation of the program remains uncertain.
After Donald Trump was elected US President, all types of foreign grants were suspended.
During that period, the MCC project was halted, and some USAID programs in Nepal were canceled.
“The US government has granted permission to proceed with specific activities under the MCC Nepal Compact,” MCA Nepal stated in a press release.
“This approval does not indicate any final outcome of the review.”
Following an order from President Trump, MCC had previously informed the Nepal government on February 20 that it would halt payments, throwing the Nepal project into uncertainty. Now, MCA Nepal has confirmed that the suspended project is set to resume.
“MCA Nepal is awaiting further updates on the US government’s review of foreign aid and is closely coordinating with the Nepal government and the Millennium Challenge Corporation to ensure the project progresses,” the statement read.
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