Nepali parliament ratifies US$500m aid with ‘interpretative statement’

February 28, 2022 12:10 a.m. STI

Kathmandu [Nepal]Feb. 28 (ANI): Nepal’s House of Representatives on Sunday ratified the US$500 million-Millennium Challenge Corporation (MCC) aid pact along with an “interpretative statement”.
Sunday’s parliamentary meeting which lasted late into the night adopted a 12-point statement called an “interpretative statement” which includes the government’s responses to questions raised in parliament.
“The voices of the House members who are in favor have been heard aloud, thus proving the majority. Agreement between the government of Nepal and the United States aid agency Millennium
Challenge Corporation- Millennium Challenge Compact, together with an interpretative statement, was passed by the House of Representatives in accordance with Clause 279 of the Constitution of Nepal and Rules of Parliament 2075, Rule 230, hence a proposal for ratification was passed . Announced Speaker of the House, Agni Prasad Sapkota.
A meeting of the ruling alliance which began earlier today at the Prime Minister’s residence adopted the 12 points which clearly state that the parties will not consider the MCC as part of US military strategy (IPS).
“As a party to the pact, Nepal will not be part of the Indo-Pacific strategy of the United States of America or any strategic, military or security alliance that has been hereby announced,” Janardan said. Sharma, finance minister of the Himalayan nation. statement despite protests from the CPN-UML opposition.
Similarly, the parties have also declared that MCC Compact will not be above the constitution and laws of Nepal. In addition, the MCC Compact will only be considered as financial assistance, and the audit should be carried out by the Office of the Comptroller and Auditor General of Nepal.
The statement also stated that they would even reverse the decision based on
political consensus. Before that, the ruling parties were in internal talks on the

The rift had widened within the ruling alliance before the adoption of the statement that nearly ended the alliance formed against former Prime Minister KP Sharma Oli.
The U.S. government’s MCC signed a $500 million agreement with the government of Nepal in September 2017 aimed at maintaining road quality, increasing the availability and reliability of electricity, and facilitating cross-border trade in electricity. electricity between Nepal and India, helping to stimulate investment, accelerate economic growth and reduce poverty.
This will help Nepal better deliver essential services to its people, facilitate
movement of goods across the country and open up new opportunities for the private sector
investment–all to create sustainable development for the people of Nepal.
According to MCC, strengthening the reliability of key infrastructure will put the country’s economy on a firmer growth path, advance stability, support regional security and reduce poverty.
An additional $130 million contribution from the Government of Nepal in support of the compact – the largest initial partner country contribution in MCC’s history – will enable even greater impact and benefits for the people of Nepal .
The protest continued in the Nepalese capital against the US grant pact as demonstrators fueled by disinformation continued to picket near the federal parliament, still resulting in stone throwing, tear gas being fired and charges at truncheon by the Nepalese police.
It had become a subject of protest as the deep-rooted rumor claiming it was a military pact remained high. Although the US mission in Kathmandu attempted to clarify the matter, a bewildered group of people continued to crowd near parliament on the day the parliament meeting was called. (ANI)