The ruling Nepal Communist Party (NCP) on Friday decided that Millennium Challenge Corporation (MCC) should be approved and implemented only with the necessary amendments. After a series of debates and discussions, the meeting of the party’s Standing Committee made such a decision.

A meeting that was held in the month of Magh last year formed a task force under former Prime Minister Jhalanath Khanal. The team had proposed to amend the document before it gets approved by the parliament. A faction of the NCP was against MCC as it considered the program to be a part of the US-led Indo Pacific Strategy (IPS). Some of the leaders expressed doubts that the project was a strategic move from US to put Nepal in a trap.

The Nepalese Government has claimed that it will not be a part of the IPS although it has maintained its willingness to be a part of the MCC. The grant received through MCC will be used in infrastructure development. Nepal signed the MCC in Washington D.C., USA on September 2017. The US will be providing NRs 60 billion within five years and Nepal would need to contribute NRs 15 billion within the same period. It has been said that NRs 45 billion will be used for constructing transmission lines and remaining amount will be used to upgrade and repair roads.

During the standing committee meeting, Nepal Communist Party (NCP) Chair Pushpa Kamal Dahal ‘Prachanda’ did not give a clear answer upon how the required amendments will be made. Standing committee member Subash Chandra Nembang told DCNepal that as MCC is a complex issue, the process for proposed amendments are yet to be decided. Jonathan Brooks, Deputy Vice President of MCC headquarters in the United States said that they are ready to clarify any confusion regarding any part of the document. He also clarified that MCC is not a part of IPS and Nepal need not to worry. It is yet to be seen whether the US is willing to accept the amendments when the Nepalese side proposes the same.