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Private sector demands endorsement of MCC deal

us MCC-1

Kathmandu, October 7

Three big private sector business associations have called for the endorsement of the Nepal-US Millennium Challenge Corporation (MCC) deal signed in 2017.

In a joint statement issued on Wednesday, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries (CNI) and the Nepal Chamber of Commerce demanded that the MCC be passed by the parliament.

Nepali politicians and society are virtually divided about the deal as many people argue the deal has some provisions against the national sovereignty and national interests whereas many others think it is a great help for the country’s development. Read more about the long-standing dispute.

“We urge the Government of Nepal, all political parties and stakeholders to immediately pass and implement the MCC deal in the national interest as an adequate investment is needed to revive the economy in the aftermath of the Covid-19 pandemic and the MCC has the potential for long-term power export and technology transfer,” the statement reads.

As per the agreement reached between the two countries, the construction of power transmission lines and road maintenance have not progressed yet, the statement says, adding timely completion of power transmission line and road maintenance projects, which are of strategic importance in Nepal’s development, would help in high economic growth.

“The provision that projects under the MCC should be completed within five years of commencement can be a model for good governance and development. As the MCC projects have been implemented in more than 30 countries in Europe, Asia, Latin America and Africa, the private sector is confident of smooth implementation in Nepal as well, ” reads the statement.

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