The Millennium Challenge Corporation (MCC) Nepal Compact will continue without disruption after the U.S. Secretary of State granted a specific exemption in February 2025. This decision enables full implementation of the compact despite a broader U.S. government review of foreign assistance programs currently underway.
In a statement released on Wednesday, the U.S. Embassy in Kathmandu confirmed that both the MCC and the U.S. Mission in Nepal remain engaged with Nepali stakeholders to ensure a constructive outcome from the ongoing review process. The exemption ensures that MCC activities in Nepal will not be affected by the temporary freeze on select foreign aid programs.
The MCC, in coordination with Nepal’s Ministry of Finance and MCA-Nepal, is pushing forward with both ongoing and planned infrastructure projects. These efforts are being implemented with a focus on transparency, sound governance, effective execution, and risk management. The compact’s core projects include improvements to Nepal’s electricity transmission network and key road infrastructure.
Reiterating long-term U.S. support for Nepal, the Embassy emphasized America’s commitment to strengthening bilateral relations and supporting Nepal’s economic growth and resilience. The MCC Nepal Compact, valued at approximately USD 500 million, is regarded as a milestone in U.S.-Nepal development cooperation, aimed at unlocking Nepal’s growth potential through critical infrastructure upgrades.
