Technical assistance

Minister Karki insists on the ratification of the MCC pact by the parliament

Minister Karki insists on the ratification of the MCC pact by the parliament

Communications and Information Technology Minister Gyanendra Bahadur Karki in parliament on Sunday.

KATHMANDU: Minister of Communications and Information Technology, Gyanendra Bahadur Karki, has insisted on the need to endorse the MCC pact concluded between the Government of Nepal and Millennium Challenge Corporation (MCC) by the representatives of the people in accordance with the provisions constitutional.

Tabling the document in the House of Representatives (HoR) on Sunday, he urged political parties to help ratify it to secure the benefits of development projects. The government spokesperson informed the House that the aid agreement was to provide US$500 million in aid for the development of a 400 KV transmission line and maintenance of roads in the country.

September 14, 2017 marked the signing of the agreement and the projects to be implemented under the aid must be completed within five years of the implementation of the agreement.

As informed by Minister Karki, the Ministry of Law, Justice and Federal Affairs on January 11, 2020 had advised to ratify the proposal of the lower house by general majority and it was presented to the House following the same opinion. The document was finally presented to the Chamber two and a half years after it was registered with the Secretariat of Parliament.

Minister Karki tabled it on behalf of Finance Minister Janardan Sharma.

Earlier, a meeting of the ruling partners held at the prime minister’s official residence agreed to forward the deal to parliament.

It should be noted that the Head of the Foreign Aid Coordination Division was appointed as the focal point to coordinate with the MCC during the tenure of Baburam Bhattarai as Prime Minister of Nepal and Barshaman Pun as Minister finances. At that time, he was informed that Nepal had been selected in the MCC Threshold Program.

A team of Nepali economists was formed for “content analysis” in the 2069/70 BS financial year when Khila Raj Regmi was the chairman of the cabinet and Shankar Prasad Koirala was the finance minister. Similarly, in 2070-72 BS, Nepal was informed that it was selected for the MCC compact.

At that time, Sushil Koirala was the Prime Minister and Dr. Ram Sharan Mahat was the Minister of Finance. This followed the appointment of former secretary Krishna Gyawali as national coordinator for the preparation of the compact program and steering committee under the chairmanship of the then finance minister.

Later, it was agreed to accept technical assistance to assess feasible projects in 2072-73 BS. The decision was also taken to accept technical assistance to prepare the preliminary draft of the compact and carry out the feasibility study of the projects. This was followed by the decision to grant monetary assistance of 1.13 billion rupees (10.75 million US dollars) to develop the compact programmes.

At the time, KP Sharma Oli was Prime Minister and Bishnu Poudel was Finance Minister.