September 8: The government has started efforts to endorse the US-funded Millennium Challenge Corporation (MCC) grant agreement.

After four years of dilly-dallying, the government is making an attempt to endorse the MCC through the current parliamentary session that will begin later today (September 8).

It has been four years since the MCC agreement was signed on September 14, 2017. According to a source at the Finance Ministry, the government has sought explanation from the MCC regarding the disputed issues related to the grant. As soon as it receives reply, Finance Minister Janardan Sharma will present the grant agreement in Parliament for endorsement. However, it is not easy for the government to approve the MCC without majority support.

From the House of Representatives to the general public, the government has been under intense pressure not to approve the MCC.

Deuba instructs MPs not to speak arbitrarily

Nepali Congress President and Prime Minister Sher Bahadur Deuba has instructed parliamentarians of the ruling party not to speak arbitrarily against the MCC. Stating that the MCC agreement is in Nepal's interest, he gave such instructions at the parliamentary party meeting of the Nepali Congress on Tuesday.

During the meeting, Deuba also said that unnecessary politics is happening in the name of MCC. According to him, the country is still borrowing large amounts of money from the World Bank and Asian Development Bank at high interest. MCC is a grant for development and it is being politicized unnecessarily, said Deuba. He added that the grant is for the development of the country and the government is taking forward the MCC to reduce the debt.

During the meeting, Deuba said that power transmission lines and roads would be upgraded in Nepal under the MCC project. He said that discussions would be held with the parties represented in the parliament to pass the MCC. On the other hand, Members of Parliaments of Congress raised various queries and questions about the MCC. Some lawmakers also drew Deuba's attention to the fact that some provisions of the MCC cannot be passed without amendment.

Don't let the MCC pass in the current form: Dahal

Addressing a meeting of the Young Communist League (YCL), a sister organisation of the CPN-Maoist on Tuesday, chairman Pushpa Kamal Dahal said that the MCC should not be passed in the current situation.

“The issue of MCC is being discussed not only in the cities but also in the villages. We have sent a diplomatic note to the United States after drawing the attention of the government and the party but the answer is yet to be received,” said a YCL leader quoting Dahal. “In the current form, the MCC will not be passed under any circumstances. There is no possibility of MCC to be passed by parliament.”

Dahal urged the cadres to remain calm saying that the Maoists would not enter into an agreement that would harm the nation and nationality. Dahal said that the suggestions given by the task force led by the then CPN senior leader Jhala Nath Khanal would also be taken into consideration.

Indication that UML will not support

The main opposition party, the UML, had tried to expedite the MCC when it was in power. Due to the lack of cooperation from the speaker of the parliament at that time, he could not move forward the proposal in the Parliament, which led to a long conflict between the then Prime Minister and the Speaker. Now as the UML is in opposition, its strategy is wait and watch. UML chairperson KP Sharma Oli has been challenging the ruling party to pass the MCC. He reiterated the same thing while addressing a party function in Pokhara on Tuesday. According to a high-ranking source, the UML will not support the government in approving the MCC.

MCC vice president coming to Nepal

Fatema Sumar, vice president of the US-funded project MCC, is scheduled to visit Nepal. She is coming to Nepal on September 9 as the dispute over the MCC agreement is escalating.

She will meet Prime Minister Sher Bahadur Deuba, leader of the main opposition party and Chairman of the CPN-UML KP Sharma Oli, Chairman of the CPN-Maoist Center Pushpa Kamal Dahal, Chairman of the CPN (Unified Socialist) Madhav Kumar Nepal and others to take stock of the implementation status of the MCC.

Slogans against MCC in the streets

As the government tried to move forward the MCC in Parliament, slogans against the MCC began to erupt in the streets. Protests by the ruling and opposition parties and civil society have started on a daily basis. Their only demand is to repeal the MCC. Accordingly, the Communist Party of Nepal led by Netra Bikram Chand has announced an agitation against the American project MCC.

The central office of the CPN (Maoist) on Tuesday revealed a programme of the week-long agitation including a general assembly in Kathmandu. Bibeksheel Sajha Party, which has been identifying itself as an alternative power, has also urged not to pass the MCC agreement in its current form. In a statement, Bibeksheel Sajha Party said that some of the conditions of the MCC agreement were highly objectionable and against Nepal's national pride and interests. It said those conditions should not be passed without amendment.