Ruling parties to ratify MCC; will be revoked if Nepali law is violated

With the approval of the US aid project MCC, the parliament has decided to announce that Nepal will not join any US military alliance.

The four ruling parties have agreed to ratify the Millennium Challenge Compact with an explanatory announcement.

The Maoist Center and the Unified Socialist Center have become flexible after the alliance became fragile due to the MCC. After the top leaders agreed on the proposal of the explanatory declaration prepared by the second-tier leaders, the MCC approval reached a consensus at the meeting of the coalition held on Sunday.

Theoretical discussions are taking place in the parliament now. After that, the Council of Ministers will pass the explanatory declaration proposal & take it to the Parliament, and approve MCC.

Such is the explanatory declaration:

1. In relation to the Compact, Nepal declares that it does not consider itself to be bound by any strategic, military, or security alliance, including the Indo-Pacific Strategy of the United States of America.

2. In relation to Article 2.7, Article 5.2 (b) (3), Article 5.2 (b) (4) of the Compact, Nepal understands that the purpose of the said provisions of the Compact applies only to the use of MCC grants. It declares that Nepal is not obliged to comply with existing or future US laws or policies for any purpose other than the use of grants.

3. In relation to Article 3.2 (b) of the Compact, the Millennium Challenge Account Nepal Development Committee (MCA-Nepal) declares that the activities to be conducted will be regulated by the law of Nepal and in accordance with the Compact.

4. In relation to Article 3.2 (f) of the Compact, MCC declares that the intellectual property in accordance with Article 3.2 (f) of the Compact shall not be owned and that all intellectual property created under the Compact Program shall be owned and utilized by Nepal.

5. In relation to Article 3.5 of the Compact, the implementation letters declare that they will be implemented within the scope of the Compact.

6. In relation to Article 3.8 (a) of the Compact, MCA-Nepal declares that all activities and funds will be audited by the Auditor-General in accordance with the prevailing Nepali law.

7. In relation to Article 5.1 (a) of the Compact, Nepal declares that it has the right to reject the Compact or MCC grant amount by giving thirty (30) days prior written notice if the activities/programs under the Compact violate the laws or policies of Nepal.

8. In relation to Article 5.5 (c) of the Compact, Nepal declares that the provisions that are said to be applicable even after the termination, suspension, or termination of the Compact are relevant to the extent of evaluation, audit, and tax variance of the projects under the Compact, including the use of the remaining MCC grant money.

9. Regarding Article 7.1 of the Compact, the Constitution of Nepal declares that it shall be above the Compact. At the same time, it declares that the programs/projects under the compact will be implemented in accordance with the laws of Nepal and the compact itself.

10. In relation to Article 8.1 of the Compact, it declares that all movable and immovable properties, including electricity transmission projects, lands related to the project will be owned by the Government of Nepal or the bodies of the Government of Nepal.

11. Regarding the letter received by Nepal from Millennium Challenge Corporation on 8 September 2021, Nepal understands that the reply of Millennium Challenge Corporation in the letter will help in the interpretation and implementation of the Compact.