The Nepal government and the US government’s Millennium Challenge Corporation (MCC) have agreed to add an extra $50 million (around NPR 7 billion) to the MCC Nepal compact.
Total funding and contributions
With this addition, the total funding under the compact reaches $747 million (around NPR 106 billion). Of this, $550 million comes from the US, and $197 million from the Nepal government.
The extra money will help:
- Complete priority electricity transmission projects
- Strengthen Nepal’s energy system
- Boost regional energy trade
The agreement also aims to improve the reliability of the energy grid and market access, supporting Nepal’s integration into international energy networks.
The compact encourages the use of American technology and best practices in Nepal’s energy infrastructure. It also opens opportunities for US companies to enter the Nepali market.
This financial support reflects the longstanding partnership between Nepal and the US. For decades, both countries have worked together on economic growth, energy security, and shared prosperity. The MCC Nepal compact continues this legacy with grant-based, high-impact infrastructure projects.
