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Millennium Challenge Corporation's Nepal Compact

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Millennium Challenge Corporation's Nepal Compact is a compact between the American aid agency Millennium Challenge Corporation (MCC) and the government of Nepal. Nepal was the first South Asian country to qualify for an MCC contract by passing 16 of the 20 policy indicators used by the MCC. The agreement was signed in Washington DC in September 2017; then Finance Minister of Nepal, Gyanendra Bahadur Karki, and then US deputy Secretary of State, John J. Sullivan, were present. This compact had begun developing on the request of Nepal[1] in 2012 when Baburam Bhattarai was prime minister and Barsaman Pun was finance minister of Nepal.[2]

Nepal's parliament ratified MCC compact on 27 February 2022 with a majority with certain interpretive declaration through understanding between all national parties.[3][4]

In what would be the largest single grant Nepal has ever received, MCC would provide $500 Million to be used for building transmission lines and for the maintenance of highways; Nepal would contribute $130 Million to the projects.[5]

Political response

[edit]

The compact became controversial in Nepal after then Deputy Assistant Secretary of State for South Asia David J. Ranz said that the MCC compact was a vital part of America's Indo-Pacific Strategy.[6] As the document says that it would supersede the country's laws in case of conflict, it needed to be ratified by the parliament, according to the Nepal Treaty Act. Because lawmakers from within the major political parties were split on whether the compact is in Nepal's national interest, it was not brought for voting in parliament for a long time.[5]

The government eased the process by making interpretive declaration along with ratification from parliament. As a result, each national party voted for ratification and the compact was ratified on 27 February 2022.[3][4]

Nepali Congress

[edit]

The current ruling party of Nepal, the Nepali Congress gave a justification of 12 points on 15 February 2021 after its central working committee meeting. It included that MCC was not as advertised by some sources and leaders. The party also made a decision to launch an awareness campaign. It reported that MCC was a type of help (aid). Nepal would be helped by the construction of transmission lines and other infrastructure to be built as per the agreement. The party documents included the timeline of events from the starting of MCC to the release of the documents. It included the progress achieved during the governments led by Baburam Bhattarai, KP Sharma Oli, Puspa Kamal Dahal and the fourth term of Sher Bahadur Deuba in 2017.[7] The party said it was necessary to remove the misconception in the general public that led to opposition to the aid.[8] The party also requested political parties not to have a dual approach on MCC.[9]

Many congress leaders spoke publicly on this matter including former party general secretary Shashanka Koirala, Prakash Sharan Mahat, Shekhar Koirala and Ram Chandra Poudel. Former party Vice president Bimalendra Nidhi said that having a dual nature, damaged the credibility of the country internationally.[10][11] This was taken seriously by media who reported that Nepal's diplomacy and international relations were in continuous decline in recent years.[12] Former finance minister Ram Sharan Mahat said that MCC was a game changer project so there would be no reason for a decline in support.[13] Party general secretary, Gagan Thapa said that the party was adamant in its decision.[14] He added that the party's perception wouldn't change whether it was in opposition or government.[15] He said the party would be in support of rectifying MCC, breaking the illusion it was created for personal profit.[16] Congress leader and former Defence minister Minendra Rijal said that the behaviour of Maoists had still not changed and they were thinking of making even Nepali Congress a red Congress.[17]

CPN (UML)

[edit]

The former ruling party and current chief opposition party of Nepal, the Communist Party of Nepal (Unified Marxist–Leninist) stood in support while in government.[18]

Presently, its majority leaders are silent on the topic. Recently, it was reported that it would support in approving MCC from parliament if Nepali Congress would support removing the current speaker of parliament.[19]

Both Nepali Congress and CPN (UML) reported that the people and party who brought MCC to Nepal are going against their own decision.[20] Former Deputy prime minister and senior deputy chairman, Ishwar Pokhrel in his statement added that the speaker should condemn his decision to not let the MCC compact be tabled during the government led by KP Sharma Oli.

Former prime ministers and party president KP Sharma Oli condemned the works done by so-called krantikaris/revolutionaries, targeting the All Nepal National Independent Students' Union (Revolutionary), who threw stones at police and damaged the roads of Kathmandu. He alleged that their party chairman Prachanda stayed calm as a statue while sending cadres to protest.[21] He asked them not to show a double standard.[22] He suggested either leaving the government or to stop the destruction of public property.[23] He questioned the government as to why the Maoists were still in government after the police were beaten.[24]

CPN (Maoist Centre)

[edit]

MCC compact entered Nepal during the premiership of Bhattarai while a committee was formed during second premiership of Dahal to rectify MCC. During premiership of Bhattarai, Barsaman Pun was the finance minister while Krishna Bahadur Mahara was the finance minister during premiership of Dahal. Maoist leaders Matrika Prasad Yadav, Bina Magar, Shakti Bahadur Basnet, Giriraj Mani Pokharel and Ram Bahadur Thapa were part of Second Oli cabinet which took MCC to parliament. At the time, they had given approval to table MCC.[25]

Party president Prachanda publicly maintained that the Millennium Challenge Corporation's (MCC) Nepal Compact could not be ratified without amending certain clauses. It was found that he was in favor of ratification as it was.[26] MCC later released the letter dated September 29, 2021, in which Prachanda and Prime Minister of Nepal Sher Bahadur Deuba assured MCC that the compact would be ratified within four to five months.[27] Major national newspapers criticized Prachanda's move, saying it would deteriorate Nepal's diplomatic strength and virtue.[28][29]

They reported that it was dual nature of the party to both stay in government and protest at the same time for personal profit and vote swing.[30] This move was highly criticized by people and medias.[31][32][33]

CPN (Maoist Centre) sister organisation, YCL and ANNISU (Revolutionary) leaders destroying public properties to attack police force[33]

The party chairman had given approval to table MCC while several fellow politicians stood in opposition to the chairman's decision. They called for protests even on streets. Many police were attacked. Trees were broken, the blocks of footpath were removed to attack police as shown in picture. The branches of trees were broken.[34] The Maoist cadets destroyed a boutique while the owner was saving police.[35] Government had to pay for the loss. Leader of opposition and chairman of Communist Party of Nepal (Unified Marxist–Leninist), KP Sharma Oli condemned the decision of Maoists to stay in government while destroying public property at the same time.[36] The Home Minister of Nepal, Bal Krishna Khan's and Prime minister asked the protesters to stay calm and not destroy public properties casing loss to the government and economy.[37]

CPN (Unified Socialist)

[edit]

One of the governing alliance members, the Communist Party of Nepal (Unified Socialist)'s chairman Madhav Kumar Nepal and senior leader Jhala Nath Khanal publicly denied the possibility of the compact getting tabled in parliament. If tabled, the party would vote in opposition.[38]

The medias criticized the dual approach of the CPN (Maoist Centre) and the CPN (Unified Socialist) protesting in the streets while in government. They reported that the position of the party to both stay in government and protest at the same time was for personal profit and to swing voters.[39][40]

People's Socialist Party, Nepal

[edit]

The fifth largest party of Nepal and a junior ally in the current government, the People's Socialist Party, Nepal remains divided on this topic. A faction of the party stated that it had no opinion on the matter. It would support the CPN (Unified Socialist) and the CPN (Maoist Centre) without making its own approach.[41]

The party's other faction, led by Baburam Bhattarai, stood in support of the project. Leader Bhattarai said that having a dual approach on the topic was wrong. He requested parties including the CPN (Maoist Centre) to stay out of the government rather than having a dual approach on the topic.[42] This dual nature of CPN (Maoist Centre) and CPN (Unified Socialist) was also criticized by national medias.[33]

Loktantrik Samajwadi Party, Nepal

[edit]

Though outside the government, the party made a decision to vote in support of getting the MCC passed. It reported that it would vote for acceptance if tabled in parliament.[43] Senior leader Laxman Lal Karna said the party was clear to vote for MCC as it was a grant.[44]

The party president Mahantha Thakur asked, "Why are the people against MCC silent on BRI?", aiming his comment at the communist parties in the ruling collision except for the Nepali Congress.[45]

Projects

[edit]

MCC will provide $500 Million, and Nepal will contribute $130 Million for the programme which will complete two distinct projects in energy and[43] transportation within five years. Nepal's contribution to the compact is the highest upfront contribution by a beneficiary country to an MCC programme.[46] The Electricity Transmission Project intends to build a 318 km long 400KV transmission line with three high capacity sub-stations to more efficiently transfer power.[47] The Hetauda-Damauli-Butwal transmission line will reach the Indian border, which will enable Nepal to export power from Nepalese hydropower projects which are expected to produce a surplus in the next decade. The Road Maintenance Project is intended to "improve the maintenance regime in Nepal". About 300 km of the East–West Highway will be improved and maintained, and MCC hopes to encourage and incentivise the Nepal government to spend more resources on periodic maintenance of key roads.[48]

Millennium Challenge Account–Nepal

[edit]

Millennium Challenge Account–Nepal is the government agency in charge of managing the compact in Nepal.[49] Its executive board is chaired by the Secretary of the Finance Ministry.[50]

History

[edit]

MCC began developing the compact at the request of Nepal[1] in 2012 when Baburam Bhattarai was prime minister and Barsaman Pun was finance minister of Nepal.[2]

The compact was taken to parliament for ratification on 15 July 2019 when KP Sharma Oli was prime minister and Yuba Raj Khatiwada was finance minister of Nepal.[51]

References

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  1. ^ a b "MCC IN NEPAL, Top Ten Facts". U.S. Embassy in Nepal. 17 January 2020. Retrieved 16 September 2021.
  2. ^ a b Editorial. "Challenge of the millennium". Retrieved 16 September 2021.
  3. ^ a b "Nepal Parliament ratifies MCC compact". kathmandupost.com. Retrieved 27 February 2022.
  4. ^ a b Online, T. H. T. (27 February 2022). "MCC ratified by House of Representatives, at last". The Himalayan Times. Retrieved 27 February 2022.
  5. ^ a b "Why the MCC compact courted controversy in Nepal". kathmandupost.com. Retrieved 6 September 2021.
  6. ^ Sharma, Namrata (13 September 2021). "MCC ball in Nepal's court". Retrieved 16 September 2021.
  7. ^ "कांग्रेसले सार्वजनिक गर्‍यो एमसिसीबारे पार्टीको आधिकारिक धारणा [पूर्णपाठ]". Farakdhar || Nepal's Online Magazine. Retrieved 16 February 2022.
  8. ^ Setopati, सेतोपाटी संवाददाता. "एमसिसीबारे कांग्रेसको १२ बुँदे धारणा (पूर्णपाठसहित)". Setopati (in Hindi). Retrieved 16 February 2022.
  9. ^ Samaya, Nepal. "एमसीसीमा दोहोरो दृष्टिकोण नराखौं, पास गरौं : कांग्रेस". nepalsamaya.com. Retrieved 16 February 2022.
  10. ^ रातोपाटी. "एमसीसी पारित भएन भने देशको विश्वनियता नै रहन्न : नेता निधि". RatoPati (in Nepali). Retrieved 16 February 2022.
  11. ^ "एमसिसी पारित नभए देशको विश्वनीयता नै रहँदैन : निधि". Farakdhar || Nepal's Online Magazine. Retrieved 16 February 2022.
  12. ^ "अन्तर्राष्ट्रिय सम्बन्धमा चुक्दै नेपाल". ekantipur.com (in Nepali). Retrieved 16 February 2022.
  13. ^ "एमसीसी : 'गेम चेन्जर' परियोजनाको तथ्यहिन आलोचना". ekantipur.com (in Nepali). Retrieved 16 February 2022.
  14. ^ "कांग्रेस बोली फेरिरहने पार्टी होइन, खुट्टा कमाउँदैन : गगन थापा". Lokaantar (in Nepali). Retrieved 17 February 2022.
  15. ^ "प्रचण्डलाई गगन थापाको व्यंग्य : हामी बालुवाटारमा एउटा खुमलटारमा अर्को बोली बोल्दैनौं". प्रचण्डलाई गगन थापाको व्यंग्य : हामी बालुवाटारमा एउटा खुमलटारमा अर्को बोली बोल्दैनौं. Retrieved 17 February 2022.
  16. ^ "बोली फेरि राख्ने चरित्र कांग्रेसले बोक्दैन : गगन थापा". Farakdhar || Nepal's Online Magazine. Retrieved 17 February 2022.
  17. ^ "'माओवादीले हामीलाई लाल कांग्रेस बनाउन खोज्दै छ'– रिजाल". ekantipur.com (in Nepali). Retrieved 18 February 2022.
  18. ^ "एमसीसी अगाडि बढाउँदा प्रधानमन्त्रीलाई अनुकूल". Online Khabar. Retrieved 16 February 2022.
  19. ^ "एमसीसीमा एमाले यता न उता". ekantipur.com (in Nepali). Retrieved 16 February 2022.
  20. ^ "कांग्रेसको दाबी : एमसीसीको प्रक्रिया अघि बढाउने नेताहरू नै अहिले विरोधमा उत्रिए". Nepal Live. Retrieved 16 February 2022.
  21. ^ "प्रचण्ड–माधवप्रति ओलीको टिप्पणी : आफू मूर्तिझैं बस्ने कार्यकर्तालाई सडकमा पठाउने". Online Khabar. Retrieved 21 February 2022.
  22. ^ "सरकारमा भएका क्रान्तिकारीका कार्यकर्ताले सडक भत्काए र प्रहरीलाई कुटे : ओली". ekantipur.com (in Nepali). Retrieved 21 February 2022.
  23. ^ Setopati, सेतोपाटी संवाददाता. "बानेश्वरमा हिजो भएको प्रदर्शनविरूद्ध खनिए ओली, प्रहरीप्रति सहानुभूति". Setopati. Retrieved 21 February 2022.
  24. ^ "ओलीको गृहमन्त्री खाँणलाई प्रश्नः प्रहरी किन कुटिए ?". रिपोर्टर्स नेपाल. Retrieved 21 February 2022.
  25. ^ "एमसिसी पेस गर्न सहमति जनाउने तत्कालीन माओवादी मन्त्रीहरू". Farakdhar || Nepal's Online Magazine. Retrieved 20 February 2022.
  26. ^ "दाहालको दोहोरो नीति". ekantipur.com (in Nepali). Retrieved 9 February 2022.
  27. ^ "यस्तो छ देउवा र प्रचण्डले एमसीसीलाई पठाएको पत्र (पत्रसहित)". Online Khabar. Retrieved 9 February 2022.
  28. ^ "सम्पादकीय: दाहालको द्वैधचरित्र र देशले चुकाउनुपर्ने मूल्य". ekantipur.com (in Nepali). Retrieved 9 February 2022.
  29. ^ "EDITORIAL: Time to act". The Himalayan Times. 8 February 2022. Retrieved 9 February 2022.
  30. ^ "एमसीसीविरुद्ध प्रचण्डको सत्ता र सडक दुवैमा एकसाथ 'संघर्ष'". रिपोर्टर्स नेपाल. 16 February 2022. Retrieved 16 February 2022.
  31. ^ Setopati, Bhanubhakta. "Options left for NC after betrayal by Maoist Center over MCC". Setopati. Retrieved 16 February 2022.
  32. ^ Bandita., Sijapati (2004). A kingdom under siege : Nepal's Maoist insurgency, 1996 to 2003. The Printhouse. ISBN 1842775715. OCLC 60697742.
  33. ^ a b c "माओवादी केन्द्र सरकार र सडक दुबैतिर". Online Khabar. Retrieved 16 February 2022.
  34. ^ "प्रचण्ड–माधवप्रति ओलीको टिप्पणी : आफू मूर्तिझैं बस्ने कार्यकर्तालाई सडकमा पठाउने". Online Khabar. Retrieved 23 February 2022.
  35. ^ Setopati, सेतोपाटी संवाददाता. "प्रदर्शनमा प्रहरीलाई जोगाउने जानकीलाई गृहमन्त्री खाणको फोन". Setopati (in Hindi). Retrieved 23 February 2022.
  36. ^ Setopati, सेतोपाटी संवाददाता. "बानेश्वरमा हिजो भएको प्रदर्शनविरूद्ध खनिए ओली, प्रहरीप्रति सहानुभूति". Setopati (in Hindi). Retrieved 23 February 2022.
  37. ^ "आन्दोलनकारीबाट पसल तोडफोड गरिएका व्यवसायीलाई गृहमन्त्रीको फोन, क्षतिपुर्ति दिने आश्वासन". nepalkhabar (in Nepali). 3 June 2019. Retrieved 23 February 2022.
  38. ^ "अनि सत्ता गठबन्धनको निर्णायक बैठक बोलाइयो…". रिपोर्टर्स नेपाल. 16 February 2022. Retrieved 16 February 2022.
  39. ^ "टिप्पणी : नेकपा 'डबल रोल'". ekantipur.com (in Nepali). Retrieved 16 February 2022.
  40. ^ "प्रचण्ड-माधवको दोहोरो भूमिका : आफैं सरकारमा, आफैं आन्दोलनमा". Nepal Press. Retrieved 16 February 2022.
  41. ^ "एमसीसीबारे जसपाको रणनीति : माओवादी र समाजवादीले जे निर्णय गर्छ त्यही गर्ने". ekagaj. Retrieved 16 February 2022.
  42. ^ "माओवादी र एकीकृत समाजवादीप्रति बाबुरामको टिप्पणी- सत्ताको तर मार्नेलाई एमसीसीको विरोध गरेर साखुल्ले बन्ने छूट हुनु हुँदैन". Himal Khabar. Retrieved 16 February 2022.
  43. ^ a b "एमसीसीको पक्षमा मतदान गर्ने लोसपाको निर्णय". www.khabarhub.com. Retrieved 16 February 2022.
  44. ^ "लोसपाले एमसीसीको पक्षमा मतदान गर्छ- लक्ष्मणलाल कर्ण". Lokaantar (in Nepali). Retrieved 16 February 2022.
  45. ^ "'एमसीसीको विरोध गर्नेहरू बीआरआईबारे किन बोल्दैनन्?'". Himal Khabar. Retrieved 16 February 2022.
  46. ^ "Compact: Nepal Compact". Millennium Challenge Corporation. Retrieved 16 September 2021.
  47. ^ "EDITORIAL - MCC controversy". The Himalayan Times. 10 September 2021. Retrieved 10 September 2021.
  48. ^ "Press Release: Nepal Compact Signing". Millennium Challenge Corporation. Retrieved 10 September 2021.
  49. ^ Seddon, David; Sharma, Jeevan R (7 July 2020). "Putting the MCC in context". Nepali Times. Retrieved 10 September 2021.
  50. ^ MALLA, DINESH (22 March 2021). "Controversy surrounding MCC-Nepal: See that it is not suspended". The Himalayan Times. Retrieved 10 September 2021.
  51. ^ "एमसीसी टेबल गर्न सभामुखलाई भनिसकेको छु : प्रधानमन्त्री देउवा". ekantipur.com (in Nepali). Retrieved 18 February 2022.
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