Government set to table MCC compact in Parliament today


Nepali Congress has decided to vote in favor of the Millennium Challenge Corporation compact in the House of Representatives and it is confident MCC will be tabled today.

The United States has set a deadline of February 28 to secure parliamentary ratification of the $500 million grant. After several deferrals over differences over the grant, the House meeting is schedule for today.

The coalition government of Nepal, formed in July 2021, is sharply divided over parliamentary ratification of $500 million dollar Millennium Challenge Corporation Compact (MCC). The $500 million US government project to upgrade Nepal’s infrastructure threatens to split the coalition government.

Prime Minister Sher Bahadur Deuba, the main opposition CPN-UML and Janata Samajbadi Party (JSP) support the deal, while the coalition partners, the CPN-Maoist Centre and CPN-Unified Socialist oppose the compact.

Despite opposition, Prime Minister Sher Bahadur Deuba appears to be determined to endorse the deal through parliament. The coalition leaders Pushpa Kamal Dahal Prachanda of the Maoist Centre and Madhav Kumar Nepal, both former Prime Ministers, have demanded that the Compact should not be endorsed in its current format, arguing that some provisions of the deal directly undermine the sovereignty of the country and its non-aligned foreign policy.

As Madhav Nepal and Pushpa Kamal Dahal are raising their ante against the Compact ratification, Deuba is now seeking support from the opposition CPN-UML party led by KP Sharma Oli, since the NC and JSP alone do not have the numbers to ratify it. Oli has hinted at the support if he breaks the coalition and supports the removal of Speaker of the parliament, Agni Prasad Sapkota.


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