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Kathmandu, Nepal
Nepal Prime Minister Sher Bahadur Deuba has been intensifying efforts to forge common ground on the Millennium Challenge Corporation (MCC) among the leaders of the coalition partners but it has made no headway.
The compact was signed between Nepal and the US in 2017 and still, Nepal has failed to reach a census to ratify it in the parliament. As per the provision, for the implementation of the MCC, the compact should be ratified by the parliament.
Meanwhile, MCC headquarters has clearly stated that any further delays could lead to the end of the US grant for Nepal.
In a letter addressed to Prime Minister Deuba and CPN Maoist chairman Pushpa Kamal Dahal âPrachandaâ on Feb 3, 22, the United States has given the government of Nepal a deadline of February 28 to endorse the compact from the Parliament.
âWithout action on your part by February 28, the MCC board will discuss next steps as its March 22 meeting, including whether to continue with the compact. Absent ratification, it is within the boardâs authority to discontinue Nepalâs eligibility to receive the $500 compact grant with the grant from the United States. Such a decision would end MCCâs partnership with Nepal," the MCC Board of Directors said in a letter.
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This letter has come in response to the commitment letter sent by Prime Minister Deuba and CPN-Maoists chairman Prachanda on September 29, 2021, to the MCC Board of Directors.
In which they âacknowledge with appreciationâ the MCC Compact signed between the US and Nepal on 14 September 2017 and âjointly make a request to the MCC Board for providing additional time for the ratification of the Compact.â
However, Prachanda's party is protesting the MCC ever since asking to amend the compact before tabling it in the parliament.
More importantly, House speaker, Agni Sapkota, a leader close to Prachanda is blocking the ratification process for months. Speaker Agni Sapkota has been known to be close to Beijing and has made no secret for his opposition to the MCC.
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In the letter, Nepal has committed to passing the compact with the required parliamentary majority within four-five months, the deadline which is approaching.
"We would discuss clarifications received from the MCC with all the coalition partners and party members, use the resource of Nepal to communicate publicly with the Nepali people and to dispel misunderstandings and apprehensions about the compact," the letter signed under the name of PM Deuba and Maoist leader Prachanda said.
"Will hold a joint conference with leaders of the coalition partners to demonstrate governmentâs positive views on the MCC ratification, disseminate accurate information about the compact through state media, encourage MCA Nepal for the implementation of the MCC compact and to jointly request Speaker to table the MCC compact in the Parliament," Nepali leaders committed in the letter.
PM Deuba is making efforts to convince other party leaders, including CPN-UML Chairman KP Oli to support the compact.
Prime Minister has been holding meetings with opposition leader KP Sharma Oli and is employing a strategy to move the MCC agreement forward by joining hands with Oli as no agreement has been reached within the ruling coalition.
Sources have said the US has threatened Nepal to stop all the aid not only from the US but also from its allies and strategic partners like WB, UN, EU, Canada, Australia.
The delay in the ratification is also because China influences some ruling parties like CPN-Maoist. Pushpa Kamal Dahal held an hour-long hush-hush virtual meeting last week with Song Tao, the high-ranking head of the International Department of the Communist Party of China (CPC).
Chinese leader Song Tao said China wants to deepen traditional ties with Nepal's political parties based on mutual political trust.
Former Nepali Ambassador to the US, Suresh Chalise spoke to WION and said one of the reasons behind the delay in the ratification is an ideology shared by Nepali political parties and Beijing.
"MCC is important for Nepal because it has a surplus of clean energy and we would like to see that it is being exported to other countries like India, Bhutan. This compact will also be a beginning of new trilateral relations," Chalise told WION.
''Is Maoists' close relation with Beijing a reason for the delay in the ratification? Ideologically yes, they think that communism is in the larger interest of Nepal than democracy. That is why they are closer to our northern neighbour."
He is of the view that if Nepal fails to pass the compact, it will "lose the trust of superpower" on a global platform.
China's suspicions about the MCC as being an American geo-strategic counter to its own Belt Road Initiative (BRI) have shaken the domestic politics in Nepal.
Sources have told WION that the US is concerned with any outside influence and the level of state-sponsored corruption has surprised and concerned the US.