By Our Reporter

 The Millennium Challenge Corporation (MCC) has approved an additional grant of USD 50 million (approximately Rs. 6.85 billion) for Nepal on January 2.

The decision to increase the grant was made to cover rising costs caused by delays in implementing MCC-funded projects in Nepal.

On December 18 last year, the MCC had informed the US Congress about its intention to increase the grant for Nepal. The MCC Board of Directors, in a meeting held on Thursday, formally approved the proposal to provide an additional USD 50 million under the Nepal Compact.

“This additional grant reaffirms our shared commitment to ensuring the success of the compact, which will strengthen Nepal’s electricity grid and support long-term economic growth,” said Cameron Alford, Vice President of Compact Operations at MCC.

With the grant increase, the total investment in MCC-funded projects in Nepal will now reach USD 747 million (approximately Rs 102 billion).

The addition of grant clearly signals increasing interest of the USA in Nepal, and it could impact geo-politics in future.