Finance Ministry delays forwarding MCA Nepal’s request to extend MCC projects
Summary
The Finance Ministry has delayed forwarding MCA-Nepal’s request for a one-year extension of US-funded MCC projects, keeping the proposal from reaching the US government’s Millennium Challenge Corporation. The delay comes as the 315-km transmission line and road upgrade works face setbacks from land acquisition, compensation, and contract re-tendering.
Key Points
- The Finance Ministry has not yet forwarded MCA-Nepal’s request for a one-year extension to the Millennium Challenge Corporation in Washington.
- MCA-Nepal says the projects are about 14 months behind schedule because of the US suspension of MCC operations and delays in re-tendering the transmission line contract.
- The $747 million compact includes a 315-km transmission line and road upgrades, with the road project progressing smoothly but the transmission line facing land, compensation and quality issues.
- Officials say the extension is considered likely, and a new US law may help facilitate it.
