WASHINGTON (January 2, 2025) - The Millennium Challenge Corporation (MCC) Board of Directors has approved $50 million of additional funding for the Nepal Compact. This Board action underscores the shared commitment between MCC and the Government of Nepal to advancing Nepal’s development priorities through transformative, high-quality infrastructure projects.
“The additional funding reaffirms our mutual dedication to ensuring the compact’s success in strengthening Nepal’s electricity grid and supporting long-term economic growth,” said MCC Vice President of Compact Operations Cameron Alford.
The Millennium Challenge Corporation is an independent U.S. government development agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants that pair investments in infrastructure with policy and institutional reforms to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.
Nepal Compact:
MCC’s Aysha House, VP of Congressional and Public Affairs speaks to, Fatema Sumar VP of the Department of Compact Operations about the journey to compact ratification in Nepal, why it was challenging, and what it means for MCC and the U.S. government.
In September 2017, the U.S. Government’s Millennium Challenge Corporation (MCC) signed a $500 million compact with the Government of Nepal. The compact aims to maintain road quality, increase the availability and reliability of electricity, and facilitate cross-border electricity trade between Nepal and India—helping to spur investments, accelerate economic growth, and reduce poverty.
Nepal faces extensive economic development challenges caused by an inadequate supply of electricity and high transportation costs to move both goods and people. The MCC Nepal Compact marks a new chapter in the U.S.-Nepal Partnership and is designed to increase the availability of electricity and lower the cost of transportation in Nepal. It will help support the Government of Nepal to better deliver critical services to its people, ease the movement of goods around the country, and open new opportunities for private investment—all to create sustainable development for the people of Nepal. Strengthening the reliability of key infrastructure will put the country’s economy on a firmer growth trajectory, advance stability, support regional security, and reduce poverty.
A $197 million contribution from the Government of Nepal in support of the compact—the largest up-front partner country contribution in MCC’s history—will enable even greater impact and benefits for the Nepali people.
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