Nepal's Parliament begins deliberations on US-grant pact

As soon as the House of Representatives session started at around 1 pm (local time), Finance Minister Janardan Sharma tabled a proposal seeking the general deliberations on the proposal to endorse the MCC compact with the US Government.

Kathmandu:Nepal's Parliament on Sunday started discussions on the contentious USD 500 million Millennium Corporation Challenge (MCC) programme of the US which has been tabled in the lower house for ratification amid vociferous protests against the grant assistance.

As soon as the House of Representatives session started at around 1 pm (local time), Finance Minister Janardan Sharma tabled a proposal seeking the general deliberations on the proposal to endorse the MCC compact with the US Government. The discussion started despite sloganeering by lawmakers belonging to the main opposition - CPN-UML - which has been disrupting the Parliament meetings continuously for the past six months to press for their demands.

The US government has set February 28 as the deadline to endorse the grant project. Meanwhile, Speaker Agni Prasad Sapkota adjourned the House for half an hour after four-hour long deliberations. The meeting will continue in the evening for further discussions over the MCC. The voting for the endorsement of the MCC compact is likely to take place late at night. The ruling alliance partners including CPN-Maoist Centre led by Pushpakamal Dahal 'Prachanda' and CPN-Unified Socialist led by Madhav Kumar Nepal are likely to vote in favour of the agreement for ratification.

Chief Whip of the CPN (Maoist Center) Dev Prasad Gurung said that the MCC agreement should be taken forward only as a purely economic project without violating Nepal's sovereignty and without violating Nepal's constitution and law. Senior leader of the ruling Nepali Congress Ram Chandra Poudel said that the party has decided to endorse the MCC and an interpretative declaration will be attached with the agreement.

He said the declaration will include the statements that the MCC is not part of the Indo-Pacific Strategy, Nepal's constitution will be above any provisions of the MCC and the country will perceive it purely as an economic assistance. However, CPN-UML leader Bhim Rawal called on the lawmakers to reject the MCC compact agreement for being treasonous'.

READ:MCC row: After US warning, will Nepal ratify the pact by Feb 28?

"It is an insult to the country to present the MCC in the parliament. It is a betrayal of the country and the people. Those who support it will be national traitors, Rawal said while participating in the discussion on the agreement in the lower house on Sunday.'

He said that Nepal's independence, nationality and sovereignty would be harmed and it should not be ratified. Prime Minister Sher Bahadur Deuba, who is also chief of ruling Nepali Congress, has held hectic political consultations with other parties regarding the endorsement of the project from the Parliament. Nepal and the US in 2017 signed the MCC agreement, meant for building Nepal's infrastructure such as electric transmission lines and improvement of national highways. The MCC is a bilateral United States foreign aid agency established by the US Congress in 2004. It is an independent agency separate from the State Department and USAID.

Nepal's political parties are sharply divided on whether to accept the US grant assistance under the MCC agreement. The Leftist political parties have been opposing the pact, saying it was not in national interest and that it was meant to counter China.

China is wary of the US making forays into Nepal, where over the years it wielded influence among the influential Marxist parties. Currently, the Nepali Congress is leading the ruling Coalition in Kathmandu which includes major Left parties - CPN-Maoist Centre CPN-Unified Socialist. China whose political influence, as well as investments, have grown in Nepal significantly, especially under the previous pro-Beijing Prime Minister K P Sharma Oli's tenure, was mostly silent in recent months after Prime Minister Deuba - an advocate of diplomatic balance foreign policy with close ties with India - took power last year.

(PTI)