Govt moves closer to signing Compact pact
KATHMANDU:
The government and Millennium Challenge Corporation (MCC) — an independent foreign assistance agency of the United States — have started discussion to obtain the US aid in priority areas under the ‘Compact’ programme of MCC.
Under the Compact funding, the country can receive US grant ranging from $66 million to $698 million for a five-year period, based on the performance indicators set by the MCC.
The MCC board led by US foreign secretary recently declared Nepal eligible for Compact programme after three years of its selection for threshold programme.As per its core objective to eliminate poverty and stimulate economic growth, MCC will start providing grants after the government and MCC sign Compact agreement that will be shaped as per the country’s specific needs.
After Nepal’s selection for the MCC threshold programme, MCC had conducted a study regarding constraints of growth in Nepal. The study identified lack of energy supply, lack of transport infrastructure, policy uncertainty and labour relations as the constraints to growth.
The government is preparing to obtain grant in mega infrastructure projects to stimulate the country’s economic growth.
Finance Minister Ram Sharan Mahat and the office bearers of National Planning Commission (NPC) today discussed the priority areas with Kyeh Kim, principal deputy vice president, Department of Compact Operations-MCC, during her visit to Nepal.
In the meeting, Finance Minister Mahat stressed on utilising the grant in energy sector promotion and transport infrastructures. “Abundant supply of power and proper road connectivity are vital to lower the production cost, through which we’ll be able to compete with other economies.”
Mahat said that generation of sufficient hydro energy and proper road connectivity will provide new impetus for manufacturing-led economic growth.In the meeting, Kim stressed on the need to sign the agreement soon. The government has commissioned former secretary Krishna Gyawali to coordinate with MCC.
Source: THT
