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- MCC indicated a significant budget cut in the year 2026, preparing to spend $224 million only
- Its investments focus on physical infrastructure, policy reform, and institutional strengthening
- MCC confirmed to provide US$ 550 million as grant
Kathmandu, June 12: The Millennium Challenge Corporation (MCC) has indicated a significant budget cut in the year 2026. According to information released by the MCC, it is preparing to spend $224 million in 2026, whereas it had allocated a budget of $930 million for 2025.
Often seen as a key competitor to China’s Belt and Road Initiative (BRI), the MCC has been spending large sums in various countries around the world. The Millennium Challenge Corporation has been providing grants to various developing countries with the aim of promoting economic growth and reducing poverty.
As of 2024, the MCC has invested in 47 countries, reportedly benefiting around 380 million people. Its investments focus on physical infrastructure, policy reform, and institutional strengthening.
Nepal signed the MCC Compact agreement in 2074 BS. However, the agreement became highly controversial in Nepal. Eventually, on Falgun 15, 2078 BS, the Nepal’s House of Representatives ratified the MCC Compact along with a 12-point interpretive declaration. Thurs, the implementation of the MCC program in Nepal began after the ratification of the agreement.
Under the U.S. grant, the MCC has been investing in electricity and road infrastructure in Nepal. With $550 million from the U.S. grant and $197 million from Nepal, the project aims to construct 300 kilometers of transmission lines and substations, and upgrade or maintain 77 kilometers of roads.
When Donald Trump assumed the office of the U.S. president, the program funding came under review for 90-days. Even now, MCC projects in Nepal have not progressed effectively. However, the Nepal government has planned to utilize about Rs 6 billion from MCC grants in the fiscal year 2082/83 BS.
According to commitments made by MCC officials to Nepal’s Ministry of Finance, Rs 5.68 billion in grants is expected to be disbursed directly in that fiscal year and has been included in the government’s budget. #nepal #MCC #MCA #DonaldTrump
