Nepal will receive an additional US$50 million in grant funding from the United States under the Millennium Challenge Corporation (MCC) Nepal Compact, bringing the total value of the programme to US$747 million, officials announced. Of the full amount, the U.S. will provide US$550 million while the Government of Nepal will contribute US$197 million.
According to the U.S. Embassy, the new funding will reinforce the Compact’s central goals—completing priority electricity transmission lines, strengthening the national power system, and expanding regional electricity trade. By improving the reliability of Nepal’s grid and enhancing market access, the initiative is expected to boost international power connectivity while promoting American expertise and best practices in energy infrastructure.