World News | Nepal Parliament Postpones Till Friday Discussion on US-funded USD 500 Million MCC Programme

Kathmandu, Feb 24 (PTI) Nepal's Parliament on Thursday postponed till Friday a discussion on the contentious USD 500 million Millennium Corporation Challenge (MCC) programme as the ruling alliance failed to reach a consensus on the endorsement of the US-funded grant assistance.

Nepal and the US in 2017 signed the MCC agreement, meant for building Nepal's infrastructure such as electric transmission lines and improvement of national highways.

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It was tabled in the lower house of Parliament on Sunday for ratification amid vociferous protests against it from some political parties. The US government has set February 28 as the deadline to endorse the grant project from Parliament.

Spokesperson for the Federal Parliament Secretariat Rojnath Pandey said the meeting called for Thursday was postponed till Friday at the request of the government.

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Nepal Prime Minister Sher Bahadur Deuba has started hectic political consultations after he failed to convince major parties of the ruling alliance - CPN-Maoist Centre led by Pushpakamal Dahal ‘Prachanda' and CPN-Unified Socialist-led by Madhav Kumar Nepal - regarding the endorsement of the USD 500 million project from Parliament.

Deuba on Thursday met main opposition leader and former prime minister K P Sharma Oli to seek his party's support for the endorsement of MCC from the House.

CPN (Maoist Center) Chair 'Prachanda' also discussed with CPN-UML chairman Oli the latest political developments in the country, including the US-funded project.

Members of the six leftist groups and sister organisations of the two ruling communist parties clashed with police as they continued their protests against the programme outside Parliament on Thursday.

The MCC is a bilateral United States foreign aid agency established by the US Congress in 2004. It is an independent agency separate from the State Department and the United States Agency for International Development (USAID).

The leftist members of the ruling alliance including CPN-Maoist and CPN-Unified Socialist as well as main opposition CPN UML are yet to make clear their stance on the agreement. The government needs support from either the ruling communist parties or the main opposition to endorse the agreement through a majority vote in Parliament.

Nepal's political parties are sharply divided on whether to accept the US grant assistance under the MCC agreement. The Leftist political parties have been opposing the pact, saying it is not in the national interest and is meant to counter China.

On Friday, Chinese Foreign Ministry spokesman Wang Wenbin in Beijing said China is “glad to see” international assistance to Nepal but it should come without any political strings attached to it.

Reacting to China's statement, the US embassy here had said, whether Nepali leaders ratify the MCC programme is a decision for Nepal to make as a sovereign democratic nation and will be Nepal's decision alone.

"The USD 500 million MCC grant is a gift from the American people and a partnership between the two countries that will bring jobs and infrastructure to Nepal and improve the lives of Nepalis," the US embassy said in a statement on Saturday.

China on Wednesday stepped up its attack on the infrastructure aid being offered by the US to Nepal, saying political strings should not be attached to a “gift” and it should not come with an ultimatum.

Beijing is wary of the US making forays into Nepal, where over the years it wielded influence among the influential Marxist parties. Currently, the Nepali Congress is leading the ruling Coalition in Kathmandu which includes major Left parties - CPN-Maoist Centre CPN-Unified Socialist.

China whose political influence, as well as investments, have grown in Nepal significantly, especially under the previous pro-Beijing prime minister Oli's tenure, was mostly silent in recent months after Prime Minister Deuba - an advocate of balanced foreign policy with close ties with India - took power last year.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)