KATHMANDU: The Millennium Challenge Compact signed between the Ministry of Finance and Millennium Challenge Corporation (MCC) six years ago is set to advance by setting the entry into force (EIF) for full-scale implementation.
A meeting of the Board of Directors of Millennium Challenge Account Nepal (MCA-Nepal) Development Committee held on August 16 has set August 30 for the EIF, according to MCA-Nepal.
The construction of power transmission lines and road development projects should be completed within five years of the beginning of the EIF.
The MCA-Nepal has said that some issues of land acquisition and distribution of compensation are yet to be solved.
The Finance Ministry and MCC signed the agreement on September 14, 2017, and the agreement was ratified by the parliament with an interpretative declaration one and a half years ago.
There are a total of six preconditions to be met prior to EIF and all of them except the land acquisition have been completed, it is reported.
For the power transmission project to be built under the MCA-Nepal, a total of 1,471 hectares of land is required and some 20 hectares of land for the Ratmate substation to be developed in Nuwakot.
Likewise, part of Nepal's financial liabilities has increased compared to the preliminary agreement.
Against the previous agreement of $130 million, Nepal will bear $197 million. So, the cost of the MCC projects in Nepal rose to $697 million from $630 million.
