MCC Nepal Compact Receives Additional USD 50 Million in Funding

The Government of Nepal and the US Government’s Millennium Challenge Corporation (MCC) have announced an additional USD 50 million (approximately Rs 7 billion) in grant financing for the MCC Nepal Compact.

With the new commitment, the total funding for the Compact has reached USD 747 million (around Rs 106 billion). Of this, the United States will provide USD 550 million, while Nepal will contribute USD 197 million.

According to the announcement, the additional funding will support the Compact’s key objectives, including completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling greater regional power trade.

The MCC said the Compact aims to improve grid reliability, expand market access, support international connectivity, and promote high-standard energy infrastructure. It also opens further opportunities for US companies and technology to enter Nepal’s energy sector, the US Embassy in Kathmandu stated.

The embassy added that the additional grant reflects the long-standing partnership between Nepal and the United States. For decades, the two countries have collaborated on economic growth, energy security and development. The MCC Compact continues that partnership through debt-free, grant-based support for high-impact infrastructure projects, it noted. -- RSS