The government has said that it is committed to implementing the projects under Millennium Challenge Corporation (MCC) Nepal Compact. In a meeting with US Ambassador to Nepal Dean Thompson on Monday, Finance Minister Rameshore Khanal assured that the government would not delay the implementation of the projects, according to a finance ministry statement.

The US ambassador had sought increased government commitment to ensure the timely completion of the MCC projects, which are being implemented through MCA-Nepal, said the ministry. Two projects—expansion of the electricity transmission lines including cross border with India, and road upgrade—are being undertaken by MCA Nepal with the $500 million US support and an additional $197 million investments from the government of Nepal.

Last week, during a meeting with the prime minister of the interim government, Sushila Karki, Ambassador Thompson had raised the issue of timely implementation of MCC projects and the need for Nepal to give its go-ahead to receive $50 million released by MCC headquarters. In the same meeting, Prime Minister Karki had urged Ambassador Thompson to discuss these matters with experts like Finance Minister Khanal.

After a brief pause by the Trump administration, MCC has now resumed work in Nepal. The MCC Compact was mired in political controversy ahead of its ratification from parliament in February 2022.

During his meeting with Thompson on Monday, Finance Minister Khanal highly appreciated the continuous support provided by the US government towards Nepal’s socio-economic development and expressed hope for such support to continue in the future.

“On this occasion, Minister Khanal and the US ambassador discussed Nepal's current transitional situation and the potential support the US could provide under these circumstances,” said the finance ministry.

During the discussion, Minister Khanal stated that the main task of the current government—formed under special circumstances—is to conduct elections within the stipulated time–March next year. He also emphasized boosting private sector confidence through reconstruction plans and concessional packages.

The US ambassador expressed condolences and sympathies to the families of those who lost their lives in recent protests and reaffirmed that the US government stands with Nepal, added the statement.