United States Signs $500 Million Compact with Nepal

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State Department spokeswoman Heather Nauert announced Thursday that the United States Government has signed a $500 million compact with Nepal.

Millenium Challenge Corporation (MCC) Acting CEO Jonathan Nash was joined by Deputy Secretary of State John Sullivan as the compact was signed with Nepali Minister of Finance Gyanendra Bahadur Karki.

The MCC is an independent agency that provides aid to foreign countries, primarily through means it deems innovative.

The compact signed with Nepal will include a five-year, $500 million grant. Nepal will have to contribute $130 million to the compact’s investment account.

This is the first compact signed by the Trump administration, and also the first made in South Asia. Additionally, Nepal’s contribution is the largest upfront contribution by a partner country ever brokered.

“MCC’s Nepal Compact is designed to spur private investment and economic growth to reduce poverty,” Nauert’s statement said. “MCC’s investments will also support regional energy connectivity in South Asia by strengthening Nepal’s power sector and facilitating electricity trade with India.”

“A stable and economically growing Nepal is in the best interest of not just the people of Nepal, but also the region and the United States,” the statement said. “MCC’s work to support stability and strengthen institutions also helps countries withstand global threats such as conflict and natural disasters.”

 

 

 

Source: News agencies  USA