Kathmandu- The United States has temporarily suspended the much-discussed Millennium Challenge Corporation (MCC) assistance to Nepal. According to the Ministry of Finance, the MCC has been put on hold for 90 days.
'The Millennium Challenge Corporation (MCC), has informed stakeholders via email that all activities funded under the MCC compact agreement between the Government of Nepal and the MCC, signed on September 14, 2017, have been suspended. This follows a 90-day suspension order issued by the U.S. President on January 20, 2025,' the Ministry of Finance stated in a press release on Tuesday.
The decision comes just days after the United States halted all assistance under USAID. Now, the MCC assistance has also been suspended, confirmed Shyam Prasad Bhandari, spokesperson for the Ministry of Finance.
According to Bhandari, the MCC sent the suspension notice on February 14, but the information was made public only today.
The MCC compact, signed between Nepal and the United States in 2017, aimed to construct a 400 kV transmission line from Ratmate in Nuwakot through Butwal to Gorakhpur.
Additionally, it included the upgrading of five key road sections. With the suspension, these projects are now expected to face significant delays.
As per the agreement, either party has the right to terminate the compact by providing a 90-day notice. However, the United States has opted for an immediate suspension, effectively halting all MCC-funded activities in Nepal.
