Kathmandu: The Millennium Challenge Compact, established six years ago through an agreement between the Ministry of Finance and the Millennium Challenge Corporation (MCC), is poised to advance with the initiation of its full-scale implementation.

During a meeting of the Board of Directors of the Millennium Challenge Account Nepal Development Committee (MCA-Nepal) on August 16, the date of August 30 was designated for the Entry Into Force (EIF) of the compact's complete execution, as reported by MCA Nepal.

The comprehensive EIF signifies the commencement of activities encompassing the construction of power transmission lines and road development projects. These initiatives are anticipated to be finalized within a span of five years from the EIF's initiation.

While significant progress has been made, certain aspects related to land acquisition and the equitable distribution of compensation remain outstanding, according to MCA Nepal.

The original agreement between the Finance Ministry and MCC was signed on September 14, 2017. Subsequently, the agreement received parliamentary ratification with an interpretative declaration a year and a half ago.

The EIF is contingent upon the fulfillment of a total of six preconditions, all of which have been met except for those tied to land acquisition.

For the power transmission project under the purview of MCA Nepal, approximately 1,471 hectares of land are required, along with roughly 20 hectares of land designated for the development of the Ratmate substation in Nuwakot.

Additionally, Nepal's financial obligations have increased compared to the initial agreement. The country's share of funding has risen from the previous 130 million US Dollars to 197 million US Dollars, leading to a revised cost of MCC projects in Nepal from 630 million US Dollars to 697 million US Dollars.