Kathmandu, January 3, 2025 – The Millennium Challenge Corporation (MCC) Board of Directors has approved an additional $50 million in funding for the Nepal Compact, increasing the total project budget to $747 million. This move reinforces the strong and enduring partnership between the United States and Nepal, aimed at fostering sustainable economic growth and development.
The United States Embassy in Nepal announced the additional grant as a significant step towards advancing transformative infrastructure projects. These projects are designed to enhance the living standards of Nepali citizens and strengthen Nepal’s electricity grid, a critical component for ensuring long-term economic growth.
Cameron Alford, Vice President of MCC Compact Operations, stated, “This additional funding reaffirms our shared commitment to ensuring the success of the compact. Strengthening Nepal's electricity grid will not only empower economic growth but also promote energy security for years to come.”
The newly approved funding aligns with MCC's mission of reducing global poverty through targeted investments in infrastructure and institutional reforms. Since its inception in 2004, MCC has focused on assisting countries that demonstrate strong governance, anti-corruption measures, and respect for democratic principles.
The proposed funding will be forwarded to the Government of Nepal for formal approval. Once finalized, the additional resources will help fast-track high-quality infrastructure projects and policy reforms critical to Nepal’s economic priorities.
The Nepal Compact, first signed in 2017, represents one of the largest foreign aid initiatives in Nepal's history. It focuses on strengthening the country’s energy and transport sectors to facilitate sustainable growth and regional connectivity.
This latest development underlines the shared vision of the United States and Nepal to drive economic transformation through infrastructure modernization and institutional capacity building.
About MCC:
The Millennium Challenge Corporation is a U.S. government agency established to promote economic development and poverty alleviation globally. It works through time-bound grants that support infrastructure development, policy reforms, and capacity building in partner countries.
Stay tuned to Ecosphere News for updates on the MCC Compact and its transformative impact on Nepal.
