MCC Suspends Its Projects in Nepal for Three Months
Hamrakura
Published 2025 Feb 19 Wednesday
Kathmandu: The Millennium Challenge Account (MCA) Nepal program, funded by the US aid agency Millennium Challenge Corporation (MCC), has been suspended for three months, according to an official statement from Nepal’s Ministry of Finance.
The suspension follows an Executive Order issued by US President on January 20, 2025, which mandates a 90-day pause on certain aid programs. The MCC informed stakeholders about the decision through an email on February 14, confirming that all activities financed by MCC funds will remain on hold during this period.
Nepal had signed the MCC compact in September 2017, aimed at funding infrastructure and energy projects. However, the program has faced political debate and delays in its implementation. The recent suspension raises concerns about the future of the projects under the MCC framework.
