Kathmandu: The Millennium Challenge Corporation (MCC) will provide an additional USD 50 million (about Rs 7 billion) in grants to Nepal under the MCC Compact, raising the total assistance available under the project to USD 747 million (around Rs 106 billion).

Under the revised arrangement, the United States will invest USD 550 million, while the Government of Nepal will contribute USD 197 million. The additional funding is expected to accelerate the completion of Nepal’s priority transmission line and energy infrastructure projects.

According to MCC, the grant will help strengthen Nepal’s energy grid, improve reliability across the generation–transmission–trade chain, and support regional energy trade. It is also expected to enhance Nepal’s international energy connectivity, expand market access, and increase the use of American technology and expertise in power infrastructure.

The US Embassy described the additional support as a symbol of the long-standing Nepal–US partnership and a shared commitment to mutual prosperity. “The MCC Nepal Agreement continues that history through high-impact infrastructure-focused, debt-free, and grant-based assistance,” the embassy said in a statement.

Despite two years since the MCC Compact came into force in Nepal, implementation has been slow. Both Nepal and MCC have significantly underspent their allocated budgets, raising concerns about whether the projects will be completed on time.