The Millennium Challenge Account Nepal Development Board (MCA-Nepal) is a Government of Nepal (GoN) agency, formed under the Development Board Act 2013 BS (1956 AD) in order to manage a USD 630 million infrastructure program. The program is co-funded by the US Government’s Millennium Challenge Corporation (MCC) Compact grant of USD 500 million and the GoN’s contribution of USD 130 million. The program aims to increase the availability and reliability of electricity, maintain road quality and facilitate power trade between Nepal and the region to help spur investments and accelerate economic growth. The Electricity Transmission Project, a national pride project, and the Road Maintenance Project are two projects under the program.
After several years of preparation Nepal and the MCC signed the Nepal Compact agreement on 14 September 2017. The agreement was signed by the then Minister of Finance Gyanendra Bahadur Karki and MCC’s Acting CEO Jonathan Nash at the U.S. State Department in Washington, D.C. The MCC Nepal Compact is expected to attract investment, accelerate economic growth and reduce poverty by increasing the availability and quality of electricity and lowering transportation costs. The two projects – Electricity Transmission and Road Maintenance – are priorities identified through extensive consultation with members of Nepali civil society, private sector and numerous other stakeholders. The MCC is not just another bilateral grant – Nepal had to qualify and compete with other countries to be eligible and eventually selected for the MCC Compact after successfully meeting MCC’s conditions on good governance, economic freedom, and investing in citizens, and the associated indicators. The MCC Nepal Compact projects are being led and implemented by Nepalis, including the 60+ employees of Millennium Challenge Account Nepal (MCA-Nepal).