July 4: The government has set ambitious targets for the next three years to implement the Millennium Challenge Corporation (MCC) Compact, which is yet to be endorsed by the parliament.

The MCC agreement has been mired in controversy since a long time. However, the government has claimed that the work of the project will be expedited in the next three years.

The recent expenditure structure prepared by the National Planning Commission, chaired by the Prime Minister, outlines the achievements to be made in the next three years.

The targets are operation of Transmission Line Rehabilitation Action Plan, Additional Survey of Transmission Line (30 km), compensation and distribution to 20 percent of the people affected by the project, completion of 10 percent of MCA Nepal Partnership Program, detailed survey and design of projects, construction of 55% of substations, 15 percent of equipment installation, maintenance and operation of 40 km long Dhankhola Lamahi road section, maintenance of 37 km long Lamahi-Shivakhola road section among others.

Likewise, 178 out of 189 plots have been acquired for Ratmate Substation and Rs 1.26 billion compensation has been distributed to the affected people. 

It is claimed that preparations are in the final stage and an agreement has been signed with the Electricity Regulatory Commission and the Department of Roads seeking required help. Agreements will be signed between MCA Nepal and the Ministry of Forestry to cut down trees and use of forest land in the next fiscal year.

Similarly, the government claims that three sub-stations, 315 km of transmission lines and about 77 km of national highways will be renovated by the Millennium Challenge Account in the next five years. The cost of this project is estimated to be at Rs 70.50 billion. 

Nepal had signed an agreement with the US-backed MCC in September 2017 to build a project with a grant of around Rs 55 billion. It had been agreed that the United States would provide $ 500 million in grants for two projects to increase electricity consumption and reduce the cost of road transport, and that the Government of Nepal would contribute $ 130 million to these projects.

Although Nepal has expressed its commitment to implement the agreement by completing all the procedures, the project has not moved ahead as agreed. MCA-Nepal has been saying that the project cannot be fully implemented without it being endorsed by the parliament.