Tuesday Nov 28, 2023
Tuesday Nov 28, 2023

Private sector excited over MCC approval

2022 Feb 28, 21:11, Kathmandu

The private sector is excited about the approval of the US aid project Millennium Challenge Corporation (MCC) by the House of Representatives. Various organizations in the private sector have expressed happiness.

 Stating that ratification of the MCC agreement is important for economic development and prosperity in itself, he expressed confidence that all the misconceptions regarding the agreement would be resolved in detail. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has expressed confidence that the agreement reached with the explanatory declaration of the House of Representatives will clear all the misconceptions about it.

 The federation said in a statement today that the construction of power transmission line and road maintenance would start after the federal parliament approves the agreement as per the agreement reached between the government of Nepal and the US aid project MCC on September 14, 2017. FNJ believes that timely completion of construction of power transmission line and road maintenance projects, which are of strategic importance in the development of Nepal, will help in high economic growth.

 The federation says the implementation of the agreement will help revive the economy after the epidemic and open the door to electricity exports and technology transfer in the long run. The provision that projects under MCC should be completed within five years of its inception could be a model for development and good governance. Emphasizing that the Millennium Challenge Account (MCA) set up for the implementation of the agreement should work expeditiously to reap the benefits, the federation said that all stakeholders need to be vigilant for that.

 As projects under MCC have been constructed in more than three dozen countries, the private sector has expressed confidence that it will be implemented smoothly in Nepal as well. It is stated in the statement that the federation is clear that any activity of infrastructure development, economic growth and job creation should not be affected under any pretext. With the ratification of the agreement, the message that there is an investment climate in Nepal as a whole will reach the world community and other foreign investments and assistance will flow in the future, the federation said. The Confederation of Nepalese Industries (CNI) has also expressed happiness over the ratification of the Agreement (MCC Compact) between Nepal and the MCC by the House of Representatives after a long discussion and debate.

 The Confederation of Nepalese Industries (CNI) is of the view that the implementation of the projects as per the agreement within the stipulated period along with the parliamentary approval will play an important role in the development of Nepal's infrastructure. The Confederation is confident that with the parliamentary approval of the MCC Agreement, the bilateral relations between Nepal and the United States will reach new heights and help build confidence.

 As mentioned in the MCC Compact, the provision that the construction should be completed within five years of the commencement of the project will be a model for the development management of Nepal. The 400 kV Lapsiphedi-Ratamate, Ratamate-Hetauda, ​​Ratamate-Damauli-Butwal transmission line and substation to be constructed under MCC assistance are important for the improvement of Nepal's internal power transmission system and inland electricity trade. The confederation said that the upgrade of Kapilvastu-Dang section of the East-West Highway would be effective for the economic development, trade facilitation and improvement of living standards of the region.

 Stating that the development of the country should lead to economic development, job creation and improvement of living standards of the people through the implementation of major infrastructure projects, the Federation said that the Government of Nepal and all stakeholders should focus on making maximum use of the assistance received from multilateral and bilateral bodies.

 He expressed confidence that the foreign exchange received along with the implementation of the project chosen by Nepal to remove the obstacles to economic growth would be useful in meeting the current shortage of foreign exchange reserves in Nepal.

With the parliamentary approval of the agreement, the way has been opened for the implementation of the project.


MCC PRIVATE SECOTRS Foreign Aid FNCCI FNJ CNI MCA Economic development UPLIFTMENT development Living Standards USA nepal
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