KATHMANDU: A proposed US$500 million (around Rs 60 billion) Millennium Challenge Corporation (MCC) Compact is still a key political issue in Nepal waiting for implementation even after four years of signing the grant agreement.
The MCC Nepal Compact, which had to be implemented long back, is still an issue of discussion. As per the provision that the final process for the implementation of MCC should be ratified by the parliament, the then government led by KP Sharma Oli registered it in the parliament on July 15, 2019.
The MCC proposal, which has been registered in the parliament, instead of bringing it for discussion with priority has been entangled in baseless rumors and internal politics.
Even though the Prime Minister and Nepali Congress (NC) President Sher Bahadur Deuba has pledged to ratify the MCC Compact from the ongoing session of the parliament, the process has not started yet due to various internal reasons — mainly political bickering.
The government’s failure to move the process forward in parliament has courted further confusion, controversy and debate over the MCC.
Nepal’s failure to take a decision on the Compact even after thematic discussion in the parliament has raised a serious question mark on the country’s decision-making capacity, credibility, diplomatic ability and balance.
It is time for Prime Minister Deuba, who should be sensitive to decide the fate of MCC from the parliament, to take it to the parliament to decide.
Contrary to the intent of the agreement, the exaggeration and misinformation have not only increased confusion about the MCC but have also been aimed at giving birth to a wrong intention to tarnish Nepal’s relations with the United States.
Despite repeated commitments by the government, there is not much time left for its practical implementation. The United States has responded to the questions sent by the government to dispel possible illusions in the political leadership.
Officials from the US Embassy in Nepal, MCC officials along with US Assistant Secretary of State for South and Central Asian Affairs Donald Lu, Deputy Assistant Secretary of State Kelly Keiderling and MCC Vice President Fatima Sumar also visited Nepal to clarify the confusion.
The United States, which has been patient for years, is not in a position to wait indefinitely for the project to be implemented under this or that pretext.
It is the responsibility of the government to start the process for the implementation of MCC. Prime Minister Deuba has the responsibility to take it to the parliament even if there is no political consensus and to table it in the parliament to provide freedom of discussion and decision by the parliamentarians.
If the MCC is withdrawn, it will be due to the inaction of the government and Prime Minister Deuba’s failure and irresponsibility in the name of not splitting the ruling alliance.
The MCC should at least be discussed in parliament and the coalition should not carry out irresponsible acts that would deprive parliamentarians of the right to make independent decisions.
The Parliament has the right to accept or reject the financial support for power transmission lines and road infrastructure, which has been mentioned clearly in the agreement, based on the points of the agreement and not on the basis of rumors.
While energy experts, the private sector, investors and independent analysts have categorically stated that the MCC could help Nepal to make a big leap in the power sector, the MCC has been discredited in the interest of some people and elements.
The MCC grant agreement between the Government of Nepal and the United States of America is now a matter to be decided by the people’s representative body rather than delaying on this or that pretext, pointing out internal reasons and demanding amendments.
In the past, when the Arun III Project was sent back in the name of national sovereignty, Nepal was pushed fifteen years back in energy development.
The government also formed a three-member task-force under the leadership of the Unified Socialist party Jhala Nath Khanal to suggest the government on MCC.
Narayan Kaji Shrestha, vice-chairman of the CPN-Maoist Center and Gyanendra Karki, Minister for Information and Communication are members of the three-member study task force.
The task force may be looking for suggestions rather than an exit, but has not been given any authority to influence the process of taking it to the parliament.
Forming a committee is nothing but prolonging the time and taking the issue out of the parliament. Coordinator Khanal’s attitude and bias towards MCC have become already clear.
The MCC was used as a political weapon against the then Prime Minister KP Sharma Oli in the dispute within the then Nepal Communist Party.
The formation of the committee under the leadership of Jhala Nath Khanal is nothing but a waste of time. The NCP-led government had on February 2, 2020, formed a three-member task force headed by senior leader Jhala Nath Khanal, then Foreign Minister Pradip Gyawali, and party’s Standing Committee member Bhim Rawal to study and suggest the government on the pros and cons of MCC.
The issue got further baffling leading to a political whirlwind when the task force submitted the report to the government on February 21, 2020.
Although the task force member and the then Foreign Minister Pradip Gyawali had a 15-point difference of opinion, the MCC was thrown into a dispute with the intention of using it as a weapon to attack the government. The MCC is in sharp political turmoil due to Chinese influence amidst the then power struggle within the NCP, internal rift and incongruities.
Even though Nepal has already completed all the procedures, there has been an unnecessary delay to ratify the MCC Compact from the parliament.
Nepal will not get any benefit from the Chinese desire to harass the US from Nepal, but will definitely encourage foreign interference in Nepal’s internal affairs.
Whether MCC is in Nepal’s interest or not is a matter for Parliament to decide. Since the MCC is completely transparent with absolutely no hidden intention, the issue has been made deliberately controversial due to China’s direct interest, influence and pressure sending a negative message to the international community that Nepal is not capable of making its own decision.
It is time for Prime Minister Deuba, who should be sensitive to decide the fate of MCC from the parliament, to take it to the parliament to decide.
The MCC grant agreement between the Government of Nepal and the United States of America is now a matter to be decided by the people’s representative body rather than delaying on this or that pretext, pointing out internal reasons and demanding amendments.
The MCC has been further embarrassed by the government’s commitment to ratify but not proceed with the process accordingly.
Even after so many years of agreement to implement it, obstructing the process without any discussion in the parliament and raising the issue of amendment or revision is a double standard political character.
It is up to the political parties and the parliament to decide whether to approve or reject the MCC otherwise it will be detrimental to Nepal. It is nothing but an irony on the part of the ruling coalition to tarnish Nepal’s credibility and image.
It is crystal clear that the Nepali Congress does not have the required majority in the parliament, and failing to take a bold decision by taking it to the parliament for discussion (even if it is not endorsed) will send a clear message that Prime Minister, too, is not ready move forward MCC in the parliament. This will further tarnish PM Deuba’s image.
Once the MCC is in the business of Parliament, the other parties can make their own decisions, and the Parliament has every right to either approve or reject it. But the prime minister’s credibility cannot be established by his mere commitment of endorsing it but not taking the initiative to take it to the parliament for discussion.
The House of Representatives can only bail out the issue now. While the task force’s report is certain to further complicate and polarize the MCC, it now appears to be taking the debate in parliament to the next level and discrediting the United States.
The MCC agreement was chosen by Nepal after fulfilling the criteria through open competition. The United States has not agreed to any other defense, security, or military agreement for the MCC grant. As this scheme is completely transparent in itself and is related to intensive development, its money cannot be spent on any military activity.
For Prime Minister Deuba, who has been making public commitments, now is the crucial time to move forward with the MCC and make a commitment or create an atmosphere of discussion within the parliament.
Now questions arise: What is barring the representatives who have won from the people’s vote from holding intensive discussions and making a decision?
Why isn’t the voice being raised when China is playing in Nepal-US relations and holding Nepal’s self-determination capacity hostage? Why is the process of blocking and moving the time being done by looking at the relations with the US from the Chinese point of view?
Nepal will not get any benefit from the Chinese desire to harass the US from Nepal, but will definitely encourage foreign interference in Nepal’s internal affairs.
The MCC has been embroiled in unnecessary controversy since Prime Minister Deuba failed to take decisive political action amid a public commitment to get the MCC passed by parliament.
Yes, everyone is well aware of Nepal’s geopolitical situation, constraints and complexities, but it is important to convey the message that Nepal is an independent nation and its decision-making capacity cannot be held hostage by China. To repeat, the Parliament has the power to approve or reject the MCC.
Since the signing of the MCC agreement between the Government of Nepal and the United States on September 14, 2017, the implementation of the agreement has been delayed each day, but no agreement has been reached between the political parties nor has it moved forward in the parliamentary process.
Representatives of the private sector have also submitted a joint memorandum to the government urging it to ratify the MCC as soon as possible.
Energy sector entrepreneurs have warned the government that Nepal would incur a loss of Rs 142 billion every year if the transmission line is not built in the energy sector.
Many hydropower projects are currently under construction in the Mid-Hills, and investors are at high risk of losing if the government did not build a transmission line under the MCC project.
Due to the lack of confidentiality and transparency of the dialogue between the Chinese leaders and the Nepali communist leaders, the topics of discussion have not been divulged.
The government of Nepal is not in a position to build another transmission line immediately and even though it starts building it, there is no project that has been completed in the stipulated amount and time.
If the transmission line — the backbone of electricity — is not constructed, besides the country’s hydropower investors, the banks that have given billions of rupees in loans, too, would suffer. In fact, the country will be plunged into a major economic crisis in the future.
That is why the energy sector businessmen are constantly urging the government to build the transmission line by approving the MCC without any delay.
For Prime Minister Deuba, who has been making public commitments, now is the crucial time to move forward with the MCC and make a commitment or create an atmosphere of discussion within the parliament.
Along with Prime Minister Deuba’s proposal to move the MCC forward from this Parliament session, Chairman of the Maoist Center Pushpa Kamal Dahal “Prachanda” has already held virtual talks with Song Tao, Chief of Foreign Affairs of the Communist Party of China. The content of Saturday’s video chat has not been made public.
In the meantime, the discussion of MCC in Nepal, the activism of Chinese leaders and the direct dialogue with the communist leaders is not a secret issue anymore.
Due to the lack of confidentiality and transparency of the dialogue between the Chinese leaders and the Nepali communist leaders, the topics of discussion have not been divulged.
Meanwhile, Chinese diplomatic activism in Nepal has also increased lately. Therefore, the Prime Minister must now make a political decision to take Nepal’s independent foreign policy out of China’s strategic grip.
The decision to accept or reject the MCC should not be delayed. The sovereign Parliament has every right to decide.
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