MCC 'suspended'

The Millennium Challenge Corporation (MCC) has been instructed by Washington to halt all payments to its Nepal contract. The $500million deal to build transmission lines and upgrade highways was ratified by Parliament in 2022 after a prolonged controversy. Nepal was also contributing $197 million for the project to build a 400kV transmission line that would have also facilitated electricity export to India. Earlier, the US Department of Government Efficiency DOGE announced through X that it has cancelled projects in Nepal worth $39M: $20M for ‘fiscal federalism’ and $19M for ‘biodiversity conservation’. USAID has already suspended its operations in Nepal, affecting the health and media sectors.