MCC Nepal: One-Year Extension Approved for Compact Duration, Progress Limited to 20 Percent
Following the disclosure that projects under the Millennium Challenge Corporation (MCC) had achieved less than 20 percent progress by the end of the last fiscal year, the Nepalese government requested a one-year extension to implement the agreement, which MCC accepted, according to the Millennium Challenge Account Nepal Development Committee (MCA Nepal).
The comprehensive progress report on national pride projects, published by the National Planning Commission within the first week of Ashwin, indicated that since the project’s inception up to the end of the last fiscal year, only 18.24 percent progress had been made financially and economically. After extended political disputes, the House of Representatives approved the agreement with explanatory remarks, leading to the MCC compact entering its implementation phase in Nepal from August 2023.
Under the project, all work related to electricity transmission lines and road network construction was initially scheduled to be completed within the next one year and six months. Subsequently, an additional one-year extension was granted. MCA Nepal stated that this recent extension approval is still awaiting formal authorization from Nepal’s Ministry of Finance.
The latest update provided by MCA Nepal reported 20.56 percent progress in the project as of September, with expenditures exceeding NPR 2.3 billion. MCA Nepal also noted that although floods and other unforeseen events have posed challenges to implementation, they are meticulously planning and working to ensure that progress is not hindered.