Nepal’s Millennium Challenge Account (MCA) has requested a one-year extension for its US-funded projects. The request, currently delayed at Nepal’s Finance Ministry, cites setbacks stemming from a pause in aid initiated during the Trump administration. These delays, combined with unsuccessful bids for a crucial transmission line component, have hampered project progress. The MCA hopes the extension will allow sufficient time to complete bidding processes and maintain the project’s viability. The Ministry’s delay in forwarding the request raises questions about Nepal’s commitment to the controversial Millennium Challenge Corporation (MCC) compact. The MCC aims to improve Nepal’s energy and transportation infrastructure, but has faced political opposition within the country. Successful completion now hinges on timely approval of the extension request.

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