The US embassy in Nepal has rejected reports suggesting America is threatening Nepal to ratify the proposed grant assistance under the Millennium Challenge Corporation (MCC).&nbsp;

The MCC has become a toxic factor between Nepal’s major political parties. Nepal’s political parties are sharply divided over the issue of whether to accept the US grant assistance under the MCC agreement, which is under consideration in the House of Representatives.&nbsp;

Nepal and the United States signed the MCC agreement in 2017.&nbsp;

“We have not threatened Nepali leaders – that is false.&nbsp;&nbsp;But we are asking Nepal to follow through on its commitments.&nbsp;&nbsp;Whether the Nepali leaders ratify MCC is a decision for Nepal to make, as a sovereign democratic nation, and Nepal's decision alone,” US Ambassador to Nepal Randy Berry said in a statement to WION.&nbsp;

“After years of delays on following through on Nepal’s promise, we simply ask that ratifying the agreement be brought to a vote so the people, through their elected officials have their say,” he added.

Ambassador Berry said this year marks the 75th year of ties between Nepal and the United States and America has stood with Nepal through "monumental and incredible changes".

"The relationship between the United States and Nepal is broader than one agreement. During these 75 years, Nepal has seen monumental and incredible changes.&nbsp;We have stood with Nepal through these changes and supported the country with development aid, disaster response and preparedness assistance, health and education programs, and more,” ambassador Berry said.&nbsp;

Commenting on the uncertainty of the compact ratification, he said, “But in general, withdrawing from a signed bilateral agreement would have an impact on any two countries’ relationship.”&nbsp;

Speaking on the compact, ambassador said, “We have had discussions with Nepali leaders – but not in the way characterized by some press and online discourse.&nbsp;&nbsp;As verifiable by public documents or statements, Nepali leaders understand that MCC will bring jobs and infrastructure to Nepal – it is why the government of Nepal asked us for an MCC Compact in the first place.”

“Unfortunately, this development program has been mired in disinformation.&nbsp;&nbsp;This is disinformation about a program which is based on transparency, accountability, and democracy – who would be against that?” he added in the statement.&nbsp;

As per reports, US Assistant Secretary of State Donald Lu had raised the issue earlier during his separate telephonic conversation with Prime Minister Sher Bahadur Deuba and other ruling leaders.&nbsp;

It is said that Lu warned that “if Nepali political leadership failed to endorse the MCC compact grant within the stipulated deadline of February 28, the US would be forced to review its ties with Nepal”.&nbsp;

In a letter addressed to Prime Minister Deuba and CPN Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ on Feb 3, the United States has given the government of Nepal a deadline of February 28 to endorse the compact from the Parliament.&nbsp;

The letter had 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 the letter, Nepal has committed to passing the compact with the required parliamentary majority within four-five months, the deadline which is approaching.&nbsp;

As the deadline is hovering over the head of the Prime Minister, it seems the ruling alliance is in favour of finding a consensus on the MCC Nepal compact before it enters into the parliament.&nbsp;

The US embassy in Nepal has rejected reports suggesting America is threatening Nepal to ratify the proposed grant assistance under the Millennium Challenge Corporation (MCC).

The US embassy in Nepal has rejected reports suggesting America is threatening Nepal to ratify the proposed grant assistance under the Millennium Challenge Corporation (MCC). The MCC has become a toxic factor between Nepal’s major political parties. Nepal’s political parties are sharply divided over the issue of whether to accept the US grant assistance under the MCC agreement, which is under consideration in the House of Representatives. Nepal and the United States signed the MCC agreement in 2017. “We have not threatened Nepali leaders – that is false. But we are asking Nepal to follow through on its commitments. Whether the Nepali leaders ratify MCC is a decision for Nepal to make, as a sovereign democratic nation, and Nepal's decision alone,” US Ambassador to Nepal Randy Berry said in a statement to WION. “After years of delays on following through on Nepal’s promise, we simply ask that ratifying the agreement be brought to a vote so the people, through their elected officials have their say,” he added. Ambassador Berry said this year marks the 75th year of ties between Nepal and the United States and America has stood with Nepal through "monumental and incredible changes". "The relationship between the United States and Nepal is broader than one agreement. During these 75 years, Nepal has seen monumental and incredible changes. We have stood with Nepal through these changes and supported the country with development aid, disaster response and preparedness assistance, health and education programs, and more,” ambassador Berry said. Commenting on the uncertainty of the compact ratification, he said, “But in general, withdrawing from a signed bilateral agreement would have an impact on any two countries’ relationship.” Speaking on the compact, ambassador said, “We have had discussions with Nepali leaders – but not in the way characterized by some press and online discourse. As verifiable by public documents or statements, Nepali leaders understand that MCC will bring jobs and infrastructure to Nepal – it is why the government of Nepal asked us for an MCC Compact in the first place.” “Unfortunately, this development program has been mired in disinformation. This is disinformation about a program which is based on transparency, accountability, and democracy – who would be against that?” he added in the statement. As per reports, US Assistant Secretary of State Donald Lu had raised the issue earlier during his separate telephonic conversation with Prime Minister Sher Bahadur Deuba and other ruling leaders. It is said that Lu warned that “if Nepali political leadership failed to endorse the MCC compact grant within the stipulated deadline of February 28, the US would be forced to review its ties with Nepal”. In a letter addressed to Prime Minister Deuba and CPN Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ on Feb 3, the United States has given the government of Nepal a deadline of February 28 to endorse the compact from the Parliament. The letter had 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 the letter, Nepal has committed to passing the compact with the required parliamentary majority within four-five months, the deadline which is approaching. As the deadline is hovering over the head of the Prime Minister, it seems the ruling alliance is in favour of finding a consensus on the MCC Nepal compact before it enters into the parliament.

US dismisses reports of threatening Nepal over MCC

Nepal Prime Minister Sher Bahadur Deuba on Thursday held an extensive conversation with Donald Lu, the United States assistant secretary of state for South and Central Asian affairs on various matters ‘concerning’ Nepal-US relations.&nbsp;

Donald Lu, who is on a two-day visit, reiterated the United States’ commitment to continuing its support and partnership with Nepal on COVID-19, climate change, and other mutual interests.&nbsp;

Lu's visit comes as the US and Nepal mark 75 years of diplomatic relations.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/us-senior-officials-visit-nepal-as-two-nations-mark-75-years-of-diplomatic-ties-430144" hreflang="en">US senior officials visit Nepal as two nations mark 75 years of diplomatic ties&nbsp;&nbsp;</a>

The conversation also covered various areas of Nepal’s development priorities as well as the United States’ cooperation, including the MCC. Both sides expressed satisfaction on the overall state of Nepal-US relations.&nbsp;

The Prime Minister thanked the US Government for continued cooperation in the socio-economic development of Nepal. He expressed appreciation for the generous support of COVID-19 vaccines to Nepal.&nbsp;

To date, the US has provided an assistance of totals over $122 million&nbsp;beyond vaccine, according to US Ambassador to Nepal, Randy Berry.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/chinese-spy-agency-playing-active-role-to-destabilise-nepals-relations-with-other-nations-report-428958">Chinese spy agency playing active role to destabilise Nepal’s relations with other nations: Report</a>

Speaking on the recently concluded COP26, “Assistant Secretary of State Ambassador Lu conveyed the US Government’s planned support in the areas of adaptation and mitigation through climate finance and technology transfer,” said the Ministry of Foreign Affairs in a statement.&nbsp;

Prime Minister highlighted Nepal’s democratic credentials and the commitment to human rights and the rule of law.&nbsp;

PM Deuba also confirmed his participation in the forthcoming Summit for Democracy to be convened by the President of the United States.&nbsp;

President Biden will host the first of two Summits for Democracy on December 9-10, which will bring together leaders from government, civil society, and the private sector to set forth an affirmative agenda for democratic renewal and to tackle the greatest threats faced by democracies today through collective action.

Meanwhile, US Deputy Assistant Secretary of State for South and Central Asia Kelly Keiderling arrived in Nepal later on Thursday.&nbsp;

"Asst Secretary Lu and Deputy Assistant Secretary Keiderling reiterated the United States' commitment to continuing its support and partnership with Nepal in the areas of mutual interest like COVID-19, climate change, and others," US Ambassador Randy Berry said in a tweet.&nbsp;

Along with meeting government leaders, both US officials will also visit cultural heritage sites.

Nepal Prime Minister Sher Bahadur Deuba on Thursday held an extensive conversation with Donald Lu, the United States assistant secretary of state for South and Central Asian affairs on various matters ‘concerning’ Nepal-US relations.

Nepal Prime Minister Sher Bahadur Deuba on Thursday held an extensive conversation with Donald Lu, the United States assistant secretary of state for South and Central Asian affairs on various matters ‘concerning’ Nepal-US relations. Donald Lu, who is on a two-day visit, reiterated the United States’ commitment to continuing its support and partnership with Nepal on COVID-19, climate change, and other mutual interests. Lu's visit comes as the US and Nepal mark 75 years of diplomatic relations. Also read | US senior officials visit Nepal as two nations mark 75 years of diplomatic ties The conversation also covered various areas of Nepal’s development priorities as well as the United States’ cooperation, including the MCC. Both sides expressed satisfaction on the overall state of Nepal-US relations. The Prime Minister thanked the US Government for continued cooperation in the socio-economic development of Nepal. He expressed appreciation for the generous support of COVID-19 vaccines to Nepal. To date, the US has provided an assistance of totals over $122 million beyond vaccine, according to US Ambassador to Nepal, Randy Berry. Also read | Chinese spy agency playing active role to destabilise Nepal’s relations with other nations: Report Speaking on the recently concluded COP26, “Assistant Secretary of State Ambassador Lu conveyed the US Government’s planned support in the areas of adaptation and mitigation through climate finance and technology transfer,” said the Ministry of Foreign Affairs in a statement. Prime Minister highlighted Nepal’s democratic credentials and the commitment to human rights and the rule of law. PM Deuba also confirmed his participation in the forthcoming Summit for Democracy to be convened by the President of the United States. President Biden will host the first of two Summits for Democracy on December 9-10, which will bring together leaders from government, civil society, and the private sector to set forth an affirmative agenda for democratic renewal and to tackle the greatest threats faced by democracies today through collective action. Meanwhile, US Deputy Assistant Secretary of State for South and Central Asia Kelly Keiderling arrived in Nepal later on Thursday. "Asst Secretary Lu and Deputy Assistant Secretary Keiderling reiterated the United States' commitment to continuing its support and partnership with Nepal in the areas of mutual interest like COVID-19, climate change, and others," US Ambassador Randy Berry said in a tweet. Along with meeting government leaders, both US officials will also visit cultural heritage sites.

Nepal PM and US State SCA officials discuss matters ‘concerning’ two nations, including MCC

In response to the letter of the Nepal finance minister seeking clarifications on provisions of Millennium Challenge Corporation (MCC), Fatema Z Sumar, vice-president of the Department of Compact Operations in letter clarified that the Constitution of Nepal prevails over the MCC compact.&nbsp;

In its 13-page response, MCC has clarified all questions asked by the Nepal Government and outlined that the MCC’s mission is to reduce poverty through economic growth in Nepal.&nbsp;

Millennium Challenge Corporation (MCC) marks&nbsp;a new chapter in the US-Nepal Partnership.

MCC's&nbsp;Nepal Compact is designed to increase the availability of electricity and lower the cost of transportation in Nepal.

These investments will help the Government of Nepal better deliver critical services to its people, ease the movement of goods around the country, and open up new opportunities for private investment.&nbsp;

It is a US aid project of $630 million, where MCC will provide a grant of $500 million and Nepal will bear $130 million.

Out of the total package, $500 million will towards the energy sector while&nbsp;$130 million will go towards the roads sector.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/nepal-parliament-to-begin-new-session-today-mcc-on-agenda-411521" hreflang="en">Nepal Parliament to begin new session today, MCC on agenda</a>

Responding&nbsp;to the most asked question on the relation of MCC and military alliance, Sumar said “the US&nbsp;law that governs MCC&nbsp;prohibits MCC&nbsp;from using funding for&nbsp;any military purpose; the compact is explicit about this legal prohibition.&nbsp;Therefore, there is no&nbsp;connection between the MCC&nbsp;Nepal Compact and any military alliance or defense strategy.”

Responding to a question if projects were selected under the US team’s priorities, “All projects funded by the MCC&nbsp;Nepal Compact were selected by the&nbsp;Government&nbsp;of Nepal,&nbsp;in consultation&nbsp;with Nepal’s&nbsp;private&nbsp;sector&nbsp;and civil&nbsp;society,&nbsp;as projects&nbsp;that are important&nbsp;for Nepal’s own economic&nbsp;growth.”

Nepal also questioned the need for parliamentary ratification of MCC to which the MCC said Nepal’s Ministry of Law, Justice and Parliamentary&nbsp;Affairs, concluded that, under&nbsp;Nepali&nbsp;law, parliamentary ratification is required for the compact to be such an international&nbsp;agreement.

Most importantly, the letter said that “The&nbsp;signed&nbsp;MCC&nbsp;Nepal&nbsp;Compact&nbsp;cannot&nbsp;be&nbsp;amended&nbsp;at&nbsp;this&nbsp;time.”&nbsp;

The letter also sheds light on the controversy that has been making if MCC is part of the Indo-Pacific Strategy, “The MCC Nepal Compact is not an agreement under the Indo-Pacific&nbsp;Strategy.&nbsp;MCC compacts are agreements between MCC and the partner government.

The&nbsp;strong&nbsp;relationship&nbsp;between&nbsp;the United&nbsp;States and&nbsp;Nepal&nbsp;long pre-dates&nbsp;the Indo-Pacific&nbsp;Strategy.”

Nepal also addressed the need to clarify that if accepting MCC will impact the agreement that Nepal has reached with China’s BRI.&nbsp;&nbsp;

“The MCC Nepal Compact does not affect or limit Nepal’s sovereign right to sign&nbsp;assistance or investment agreements with any other countries,” Sumar said in response.&nbsp;

Sumar said the project that will benefit 23 million Nepalis has ‘no hidden agenda’ and that 'there has been an increase of false and misleading statements about MCC'.&nbsp;

The vice president is scheduled to arrive in Nepal on Thursday and is expected to meet Prime Minister Sher Bahadur Deuba and other political party alliance leaders in Kathmandu.&nbsp;

In response to the letter of the Nepal finance minister seeking clarifications on provisions of Millennium Challenge Corporation (MCC), Fatema Z Sumar, vice-president of the Department of Compact Operations in letter clarified that the Constitution of Nepal prevails over the MCC compact.

In response to the letter of the Nepal finance minister seeking clarifications on provisions of Millennium Challenge Corporation (MCC), Fatema Z Sumar, vice-president of the Department of Compact Operations in letter clarified that the Constitution of Nepal prevails over the MCC compact. In its 13-page response, MCC has clarified all questions asked by the Nepal Government and outlined that the MCC’s mission is to reduce poverty through economic growth in Nepal. Millennium Challenge Corporation (MCC) marks a new chapter in the US-Nepal Partnership. MCC's Nepal Compact is designed to increase the availability of electricity and lower the cost of transportation in Nepal. These investments will help the Government of Nepal better deliver critical services to its people, ease the movement of goods around the country, and open up new opportunities for private investment. It is a US aid project of $630 million, where MCC will provide a grant of $500 million and Nepal will bear $130 million. Out of the total package, $500 million will towards the energy sector while $130 million will go towards the roads sector. Also read | Nepal Parliament to begin new session today, MCC on agenda Responding to the most asked question on the relation of MCC and military alliance, Sumar said “the US law that governs MCC prohibits MCC from using funding for any military purpose; the compact is explicit about this legal prohibition. Therefore, there is no connection between the MCC Nepal Compact and any military alliance or defense strategy.” Responding to a question if projects were selected under the US team’s priorities, “All projects funded by the MCC Nepal Compact were selected by the Government of Nepal, in consultation with Nepal’s private sector and civil society, as projects that are important for Nepal’s own economic growth.” Nepal also questioned the need for parliamentary ratification of MCC to which the MCC said Nepal’s Ministry of Law, Justice and Parliamentary Affairs, concluded that, under Nepali law, parliamentary ratification is required for the compact to be such an international agreement. Most importantly, the letter said that “The signed MCC Nepal Compact cannot be amended at this time.” The letter also sheds light on the controversy that has been making if MCC is part of the Indo-Pacific Strategy, “The MCC Nepal Compact is not an agreement under the Indo-Pacific Strategy. MCC compacts are agreements between MCC and the partner government. The strong relationship between the United States and Nepal long pre-dates the Indo-Pacific Strategy.” Nepal also addressed the need to clarify that if accepting MCC will impact the agreement that Nepal has reached with China’s BRI. “The MCC Nepal Compact does not affect or limit Nepal’s sovereign right to sign assistance or investment agreements with any other countries,” Sumar said in response. Sumar said the project that will benefit 23 million Nepalis has ‘no hidden agenda’ and that 'there has been an increase of false and misleading statements about MCC'. The vice president is scheduled to arrive in Nepal on Thursday and is expected to meet Prime Minister Sher Bahadur Deuba and other political party alliance leaders in Kathmandu.

US issues clarification on MCC ahead of its officials’ visit to Nepal

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US dismisses reports of threatening Nepal over MCC

Nepal PM and US State SCA officials discuss matters ‘concerning’ two nations, including MCC

US issues clarification on MCC ahead of its officials’ visit to Nepal