Kathmandu. During a recent statement at the celebrating ceremony of launch of the Millennium Challenge Corporation (MCC) Nepal Compact, Finance Minister Dr. Prakash Sharan Mahat addressed a key challenge facing the project, expressing his optimism about its resolution.
Dr. Mahat acknowledged, “There have been some challenges, primarily related to the higher contract price offered by the Millennium Challenge Account (MCA) than the estimated cost.” This issue has been a focal point of concern in the implementation of the MCC project. However, the Finance Minister firmly stated his belief that MCA Nepal is fully capable of addressing these challenges in a timely manner.
In emphasizing the significance of MCA’s role in the project, Dr. Mahat pointed to the dedicated management team that has been assembled, boasting the necessary human resources and expertise required to navigate complex procurement matters. This team, backed by the government’s commitment, is expected to play a pivotal role in finding a satisfactory resolution to the contract price issue.
The Finance Minister’s positive outlook on resolving this challenge reflects the government’s determination to ensure the MCC project’s success. As Nepal works towards realizing the project’s objectives, the resolution of this issue is seen as a critical milestone in advancing infrastructure development and bolstering economic growth in the country.
Addressing Contract Price Challenges
Regarding the contract award process, Dr. Mahat acknowledged the existence of challenges related to the contract price offered by the Millennium Challenge Account (MCA), exceeding the estimated cost. He expressed his confidence in MCA Nepal’s ability to promptly address these issues.
Dr. Mahat highlighted MCA’s substantial responsibility in the project and praised the dedicated management team that has been assembled, comprising necessary human resources and experts. This team, with the government’s full support, is expected to play a crucial role in finding a satisfactory resolution to the contract price challenge.
The Complex Journey of the MCC Project
Reflecting on the project’s history, Dr. Mahat remarked, “MCC is a joint project, and Nepal has faced many difficulties as it has moved forward.” He recalled that an agreement was reached in 2017, with provisions for parliamentary approval. However, the approval process was marked by questions, inquiries, doubts, and misgivings. Following the resolution of these issues and parliamentary approval, the project gained momentum.
Dr. Mahat acknowledged the complexities involved in addressing social and environmental conditions in Nepal as part of the MCC project’s implementation.
The Challenge of Timely Completion
Concluding his address, Minister Dr. Mahat emphasized the formidable challenge of completing the project within the stipulated five-year timeframe. He reiterated the government’s trust in the management team (MCCA) to oversee all aspects of the project, including site applications, compensation, and contracts, with the ultimate goal of ensuring its successful completion.
As Nepal navigates the complexities of the MCC project, the resolution of contract price challenges stands as a critical milestone in advancing infrastructure development and promoting economic growth within the country.
Finance Minister Highlights MCC Project’s Importance
In a significant development, Finance Minister Dr. Mahat emphasized the crucial role of the Millennium Challenge Corporation (MCC) project in Nepal’s development during the opening ceremony of MCC Nepal. Dr. Mahat underscored the project’s potential contributions to the nation’s growth, particularly in the areas of infrastructure and electricity.
He stated, “Through this project, transmission lines will be constructed for electricity import and export, and technologically advanced roads will be developed.” Minister Dr. Mahat acknowledged the importance of transmission lines, connecting various ministries, and highlighted the commitment of ministers serving as board members to the project’s success.
Moreover, he clarified that the MCC project is not just a grant from the U.S. government but also a significant investment from the Nepalese government. Despite facing some challenges in its implementation, Dr. Mahat assured the public and stakeholders that the government remains committed to resolving any issues that arise.
