The Millennium Challenge Compact, originally signed between the Ministry of Finance and the Millennium Challenge Corporation (MCC) six years ago, is now moving forward with the initiation of the entry into force (EIF) for full-scale implementation.

During a meeting of the Board of Directors of the Millennium Challenge Account Nepal Development Committee (MCA-Nepal) on August 16, it was decided that the EIF will officially commence on August 30, as reported by MCA Nepal to the RSS.

The completion timeline for the power transmission line and road development projects is set at five years from the EIF commencement.

However, MCA Nepal has indicated that there are still some outstanding issues related to land acquisition and the distribution of compensation.

The Finance Ministry and MCC initially signed the agreement on September 14, 2017, and the agreement received parliamentary ratification, along with an interpretative declaration, one and a half years ago.

Before the EIF can be initiated, there are six preconditions that must be met, with all of them being completed except for land acquisition, according to reports.

For the power transmission project under the MCA Nepal, a total of 1,471 hectares of land are required, including around 20 hectares for the Ratmate substation development in Nuwakot.

Furthermore, Nepal’s financial obligations have increased compared to the initial agreement. While the previous agreement stipulated a cost of USD 130 million to be borne by Nepal, it has now risen to USD 197 million, causing the overall cost of the MCC projects in Nepal to increase from USD 630 million to USD 697 million.

With inputs from RSS