US approves $500 mn grant for Nepal

United States will be granting an assistance of USD 500 million to Nepal as the board of the Millennium Challenge Corporation (MCC), an independent US government agency, has approved the proposal to extend financial support to the country.

The MCC is working to reduce global poverty through economic development and the grant support is part of the USD 630-million compact programme designed for Nepal.

"The compact programme focuses on the power and transportation sectors to improve regional connectivity, spur private investment, drive growth, and reduce poverty," Kathmandu Post quoted acting MCC Chief Executive Officer (CEO) Jonathan Nash as saying.

After conducting a thorough study, the MCC had agreed to support two big projects in Nepal, the Electricity Transmission Project and the Road Maintenance Project, as energy shortage and inferior transport network are two binding constraints for Nepal's rapid economic growth.

"MCC's grant investments promote economic growth and help people lift themselves out of poverty, creating more stable, secure countries with new business opportunities," the US Embassy in Nepal said.

Earlier, the Japanese Government had approved Nepal a grand aid of (Nepalese Rupees) NRs. 280 million to the School Sector Development Programme of Nepal.

The objective of the SSDP for Nepal is to improve the quality, equitable access, and efficiency of basic and secondary education in Nepal by supporting the government's School Sector Development Programme.