Fact about MCC grant


Recently Nepali citizens, politicians, and members of the media have been asking questions about the Millennium Challenge Compact (MCC) in Nepal. We welcome your questions and the Nepali public’s engagement in understanding what benefits the program would bring to Nepal because the MCC was founded as a new model for international development based on transparency and true partnership.

1. At the request of Nepal’s leaders, the U.S. government began working with Nepal in 2012 toward development of an MCC compact.
2. Each government and every Nepali political party, when in power, has expressed a desire to conclude an MCC Compact for economic development in Nepal.
3. The MCC project is focused purely on economic development by helping to build power lines and improve roads.
4. There is NO military component to the MCC. In fact, U.S. law prohibits it.
5. Nepal does not need to “join” or “sign up” for anything in order to participate in the MCC.
6. The $500 million is a grant, with no strings attached, no interest rates, and no hidden clauses. All Nepal has to do is commit to spend the money, transparently, for the projects that have been agreed upon.
7. Nepalis proposed and decided which projects MCC will fund in Nepal based on Nepal’s own priorities.
8. MCC’s model requires Nepal to hire Nepalis to lead implementation of the projects.
9. MCC project tenders are open, transparent, and available to everyone.
10. In Nepal, as in every country where MCC works, parliamentary ratification is required and provides transparency and an opportunity for Nepalis to understand the project.

Anyone who has questions about what MCC is—or isn’t—can find these facts, all the background and data relating to MCC in Nepal, and loads of information at mcc.gov