A letter written by Nepal’s Prime Minister Sher Bahadur Deuba and Chairperson of the Maoist Center Puspa Kamal Dahal (Prachanda) to the director of Millennium Challenge Corporation (MCC) has been made public.
According to a letter obtained by GNB, Deuba and Prachanda have stated their commitment to getting the MCC approved by parliament. The MCC headquarters expressed gratitude for their commitment to passing the MCC by February 28.
In the letter, PM Deuba and Prachanda have said they “acknowledge with appreciation” the MCC Compact signed between the US and Nepal on 14 September 2017 and “jointly make a request to the MCC Board for providing additional time for the ratification of the Compact.”
The government has been making all efforts possible towards this end, the letter said, adding, “We want to assure you of Government of Nepal’s interest in securing the MCC grant and implement- go it for the economic development of Nepal.”
The two leaders have also said that they “would decide in the next four-five months to secure a required majority in the House of Representatives for the ratification of the Compact.”
“We specifically commit to discussing the clarifications received from MCC with all the coalition partners to better inform our party members,” the letter has said.
On February 3, the United States-based Millenium Challenge Corporation has written a letter addressed to Prime Minister Sher Bahadur Deuba and CPN (Maoist Center) Chair Pushpa Kamal Dahal, setting the deadline to ratify Nepal Compact.
In a response to a letter sent by PM Deuba and Maoist chairperson Prachanda on September 29, the MCC has warned that the absence of ratification would end MCC’s partnership with Nepal.
“MCC requests that you continue to work with Parliamentarians and coalition partners to ratify the Compact by the timeline indicated in your letter, no later than February 28, 2022,” A letter addressed to PM Deuba and Maoist Chairman Prachanda by MCC Board said.
In the response, it has set February 28 as the deadline, as per the request made from the Nepal side. “The MCC Board noted your commitment in the September 2021 letter to work to ratify the Compact in four to five months from the date of the letter. MCC, therefore, requests that you continue to work with Parliamentarians and coalition partners to ratify the Compact by the timeline indicated in your letter, no later than February 28, 2022,” reads the letter.
“Without action on your part by February 28, 2022, the MCC Board will discuss next steps at its March 2022 meeting, including whether to continue with the Compact. Absent ratification, it is within the Board’s authority to discontinue Nepal’s eligibility to receive the $500 million compact grant from the United States. Such a decision would end MCC’s partnership with Nepal.”
The MCC further states that continuing with the Compact is “Nepal’s sovereign choice. We have worked together with the government for close to a decade to move our partnership forward for the people of Nepal.”
The MCC Nepal Compact, which had to be implemented long back, is still an issue of discussion in Nepal.
(With inputs from Nepali media)
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