The Government of Nepal and the U.S. government’s Millennium Challenge Corporation (MCC) have confirmed an additional US$50 million in U.S. grant support for the MCC Nepal Compact, raising the total value of the programme to US$747 million. Of this, the United States has contributed US$550 million while Nepal has allocated US$197 million.
According to the announcement, the additional funding will support the Compact’s core goals, including the completion of priority electricity transmission lines, strengthening Nepal’s power system and expanding regional energy trade. By improving grid reliability and enhancing market access, the Compact aims to boost international power connectivity while promoting American expertise and best practices in energy infrastructure. The expanded initiative is also expected to create more opportunities for U.S. companies and technology to enter Nepal’s energy market.
The announcement further said the new grant reflects the enduring partnership between the United States and Nepal. For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity. The MCC Nepal Compact continues that record through no-debt, grant-based assistance focused on high-impact infrastructure, it noted.
