Kathmandu, October 7 Nepal and the United States are moving closer to an agreeme

From Onlinekhabar English

Kathmandu, October 7 Nepal and the United States are moving closer to an agreement to extend the implementation period of the Millennium Challenge Corporation (MCC Compact) in Nepal by up to one year, according to sources at the Ministry of Finance. The extension is being considered after the implementation of MCC-funded projects was disrupted for several months amid a US review of foreign assistance following Donald Trump’s return to the White House, as well as delays caused by major floods in the Trishuli River. The MCC Compact normally requires projects to be completed within five years of entering into force. Nepal’s Compact entered into force on August 30, 2023, meaning the projects are currently scheduled to be completed by August 2028. According to ministry sources, the proposed extension would be a “no-cost extension”, meaning the project timeline would be extended without increasing its cost. “Work is underway to extend the implementation period by up to 12 months without increasing the project cost,” a ministry source said.