Millennium Challenge Corporation's Nepal Compact
The agreement was signed in Washington DC in September 2017; then Finance Minister of Nepal, Gyanendra Bahadur Karki, and then US deputy Secretary of State, John J. Sullivan, were present.
[2] Nepal's parliament ratified MCC compact on 27 February 2022 with a majority with certain interpretive declaration through understanding between all national parties.
[6] As the document says that it would supersede the country's laws in case of conflict, it needed to be ratified by the parliament, according to the Nepal Treaty Act.
Because lawmakers from within the major political parties were split on whether the compact is in Nepal's national interest, it was not brought for voting in parliament for a long time.
[3][4] The current ruling party of Nepal, the Nepali Congress gave a justification of 12 points on 15 February 2021 after its central working committee meeting.
It included the progress achieved during the governments led by Baburam Bhattarai, KP Sharma Oli, Puspa Kamal Dahal and the fourth term of Sher Bahadur Deuba in 2017.
Former party Vice president Bimalendra Nidhi said that having a dual nature, damaged the credibility of the country internationally.
[12] Former finance minister Ram Sharan Mahat said that MCC was a game changer project so there would be no reason for a decline in support.
Former prime ministers and party president KP Sharma Oli condemned the works done by so-called krantikaris/revolutionaries, targeting the All Nepal National Independent Students' Union (Revolutionary), who threw stones at police and damaged the roads of Kathmandu.
[25] Party president Prachanda publicly maintained that the Millennium Challenge Corporation's (MCC) Nepal Compact could not be ratified without amending certain clauses.
[27] Major national newspapers criticized Prachanda's move, saying it would deteriorate Nepal's diplomatic strength and virtue.
[28][29] They reported that it was dual nature of the party to both stay in government and protest at the same time for personal profit and vote swing.
Leader of opposition and chairman of Communist Party of Nepal (Unified Marxist–Leninist), KP Sharma Oli condemned the decision of Maoists to stay in government while destroying public property at the same time.
He requested parties including the CPN (Maoist Centre) to stay out of the government rather than having a dual approach on the topic.
[47] The Hetauda-Damauli-Butwal transmission line will reach the Indian border, which will enable Nepal to export power from Nepalese hydropower projects which are expected to produce a surplus in the next decade.
About 300 km of the East–West Highway will be improved and maintained, and MCC hopes to encourage and incentivise the Nepal government to spend more resources on periodic maintenance of key roads.
