Government moves closer in obtaining MCC grant

Kathmandu January 1- The government has moved closer to signing a compact pact with the US government’s Millennium Challenge Corporation (MCC) as it submitted the concept paper to obtain grant with the list of projects to MCC headquarters, recently.

MCC is an independent foreign assistance agency led by the US Foreign Secretary and had selected Nepal under compact funding programme after three years of its selection for threshold programme in December 2014. Under the compact funding, the country can receive US grant of $66 million to $698 million for a five-year period based on the performance indicators set by the MCC.

The Office of the Millennium Challenge Nepal (OMCN), which has been established for identification, preparation and designing of the projects to mobilise the US government’s grant facility, recently submitted the list of a few energy and transport-related projects to the MCC headquarters. OMCN has proposed to develop Kathmandu-Tarai fast track project mobilising the US grant, according to Krishna Gyawali, MCC national coordinator.

OMCN has also proposed upgradation of the two road sections, namely Pakali (Sunsari)-Kakadvitta (eastern border) and Butwal-Pokhara of the Siddhartha Highway. Likewise, OMCN has proposed proper maintenance of two other poor quality roads Amiliya-Tulsipur-Salyan (92 km) and Silghadi-Sanfebagar (60 km).

Similarly, OMCN has identified that insufficient transmission corridors have been the major obstacle for power generation projects and has proposed two trunk line transmission projects. Hetauda-Galchhi/Naubise-Damauli-Butwal (250 km) and Haledi-Galchhi/Naubise (55 km) — 400kV double circuit transmission lines — have been proposed under energy sector. The total cost of these projects is expected to hover around $311 million.

In addition, OMCN has also proposed institutional reform support worth $8.6 million to the US government for development of the hydropower sector.  Source: THT