Responses by Millennium Challenge Corporation to Consolidated Clarification Questions from Government of Nepal Regarding the Millennium Challenge Compact


Grants, assistance, gifts, etc. do not generally come with conditions between the donor and the recipient countries. The only concerns on the part of the donors is that such donations, gifts, assistance, and grants are not being misused. The declared or undeclared motives become clear with time and circumstances. What is the basis that the support under MCC is selfless?

MCC Response: MCC’s mission is to reduce poverty through economic growth. In Nepal, MCC’s goal is to increase and accelerate improvement in the lives of Nepal’s citizens. The MCC Nepal Compact is a grant for Nepal to complete the electricity transmission and road maintenance projects that the Government of Nepal itself selected as critical for Nepal’s economic growth. The agreed-upon terms and standards included in the MCC Nepal Compact are consistent with terms and standards included in MCC’s compacts with other countries and are necessary to ensure that compact projects are completed within the five-year timeline to high technical and environmental standards and that there is no misuse of funds. Absent any misuse of funds that violate the terms of the compact, the funding does not need to be repaid. [Please follow the link for the complete document both in English and Nepali.


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