Kathmandu- The US-funded Millennium Challenge Corporation (MCC) is likely to continue in Nepal.

Currently, all activities under the MCC compact, signed on September 14, 2017, have been temporarily suspended for 90 days, starting from February 14. Two months of this three-month suspension have already passed, leaving just one month remaining.

However, Millennium Challenge Account Nepal (MCA-Nepal), the government agency formed to manage the USD 697 million MCC program, has issued a new tender.

MCA-Nepal has called for bids under its road maintenance project. The agency has proposed maintenance work for the Dhankhola-Lamahi road section and the Narayanghat-Mugling section. It has invited proposals for consultancy and supervision services for both these sections, with a submission deadline of April 24.

Government officials remain optimistic about the continuation of the MCC Nepal grant, following the tender announcement. MCA-Nepal and the Government of Nepal are not the sole decision-makers regarding tenders or contracts. Tenders are only called after approval from MCC headquarters.

Meanwhile, the Ministry of Finance has not issued a formal statement on the matter. Ambika Prasad Khanal, Under Secretary at the Ministry of Finance, stated that no further information has been received beyond the earlier decision to postpone MCC activities.

Similarly, the US President Donald Trump has not made any significant remarks regarding the MCC, and the Global Fund Manager has not initiated any staff layoffs—both of which signal confidence in the future of the MCC Compact in Nepal.

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 plans for upgrading five key road sections. With the suspension in place, these projects are now expected to face significant delays.