Nepal’s House of Representatives passed by voice vote the Millennium Challenge Corporation Nepal Compact, a $500 million grant from the US to build power and road infrastructure projects.
About:
The biggest American financial pledge to Nepal so far, it was signed in 2017 by MCC, but ratification was delayed by criticism that it undermined Nepal’s sovereignty.
The deal was approved with a note stating that it has no military or security component and nothing to do with the US strategy in the Indo-Pacific — and that Nepal would be free to pull out if the US violated this understanding.
MCC is an independent bilateral foreign aid agency established by the US Congress in 2004.
US, China, India
This increases tussle between the US, China and India in Nepal.
Nepal is surrounded by India on three sides and China on the fourth.
After becoming PM for the first time in September 2015, Oli took Nepal close to China, retaliating against the months-long economic blockade launched by India
China’s involvement in four key areas — energy, tourism and hospitality, post-earthquake reconstruction, and trade and investment — has increased substantially since then.
In recent years, it has begun to openly exercise its influence and preferences in Nepali politics.
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