The Government of Nepal and the U.S. Government’s Millennium Challenge Corporation (MCC) have announced an additional USD 50 million (approximately Rs 7 billion) in grant financing for the MCC Nepal Compact.
With this added grant, the total available funding for the Compact has now reached USD 747 million (Rs 106 billion)—including USD 550 million from the United States and USD 197 million from the Government of Nepal.
Earlier, on January 2, 2025, the MCC Board of Directors approved the additional USD 50 million for Nepal-based projects under the program. According to a statement issued by the U.S. Embassy on Wednesday, these additional resources will help achieve key objectives of the Compact, including completing priority transmission infrastructure, strengthening Nepal’s energy system, and enabling regional energy trade.
The Compact is expected to boost international connectivity by enhancing grid reliability and market access, while also promoting U.S. excellence and best practices in energy infrastructure. It further expands opportunities for U.S. technology and companies to enter the Nepali market.
“This financial support reflects the enduring partnership between the United States and Nepal. For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity. The MCC Nepal Agreement continues that history through debt-free, grant-based assistance focused on high-impact infrastructure,” the statement added.
