The US Embassy said: MCC activities are temporarily suspended

Kathmandu- The American Embassy in Nepal has said that the activities including the payment of the Millennium Challenge Corporation (MCC) have been temporarily stopped and after the review is completed, they will discuss the next steps with the Government of Nepal.
In an email dated February 2, the MCC said that activities from MCC funds related to projects being implemented under the compact between the Nepali government and the agency have been suspended in accordance with the US President’s executive order dated January 20, 2025, the Ministry of Finance informed on Tuesday. The US Embassy said that MCC is following President Trump’s executive orders and the guidance of the Office of Management and Budget (OMB).
“As part of this compliance, according to the executive order issued by President Trump on January 7, the activities related to MCC have been temporarily stopped and are under review,” the response provided by the embassy states, “The US government is committed to the partnership with Nepal and will discuss the next steps with the Nepal government after the review process is completed.” MCC has an agreement to provide a grant of 550 million US dollars (Rs 77 billion according to the current exchange rate). The Government of Nepal will invest about 19.5 billion US dollars in that project. MCA Nepal, which operates the project, has signed a contract for three 400 KV substations and 18 km transmission line. MCC has written to MCC for 90 days to refrain from activities including payment that will create liability, the Ministry of Finance has said.