Nepal will lose a $500 Million grant if Nepal fails to ratify the MCC deal by Feb 28, 2022.
The current Chief Executive Officer of MCC Mahamoud Bah responded to the joint letter of CPN-Maoist sent on Sept 29 to extend the ratifying deal for 5 months. In the letter of Sept 29, they said Nepal still shows interest in the MCC grant for the economic development of Nepal and the extended time was the time for clarifying the misconceptions about the MCC deal. But as the extended time has come to an end the US sets a deadline till Feb 28.
MCC’s response on Feb 3, “Without action on your part by February 28, the MCC Board will discuss its next step at its March 2022 meeting, including whether to continue with the compact.”
In the absence of parliamentary ratification, it is within the board’s authority to discontinue Nepal’s eligibility to receive the $500 million from the United States grant under the MCC deal.
While the deadline is set, Nepal’s Political Forces including members of CPN-Maoist are still divided over the deal, with Deuba wanting to ratify the deal and, Dahal and CPN Chairman wanting to amend the MCC deal before its ratification.
But the US government says it is not possible to amend the deal at this stage.
