KATHMANDU: The Millennium Challenge Corporation (MCC) compact between Nepal and the United States will continue as planned, following the conclusion of a review process initiated under the administration of former U.S. President Donald Trump, the Ministry of Finance confirmed on Monday.
In a press statement, the Ministry said it received official notification from MCC dated July 24, 2025, informing that the suspension and review, which had been in effect since January 20, 2025, under an executive order, has now concluded. The MCC has recommended the continuation of Nepal’s compact.
“The MCC, through its recent correspondence, has stated that the review process has ended and has recommended the continuation of Nepal’s compact,” the statement reads.
The review had raised questions about the future of the $500 million infrastructure grant, which had already faced intense political scrutiny and delays within Nepal. The compact, signed in 2017, aims to improve electricity transmission and road networks across the country.
The announcement comes as a relief to Nepal’s energy and transport sectors, where MCC-funded projects—particularly the construction of a 400kV transmission line—are seen as critical for long-term development.
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