Government's objectionable questions about MCC

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MCC

Kathmandu: In the name of clarifying the MCC, the government has inquired with the United States about Nepal's sovereignty, constitution, and independence. Diplomats say such unnatural and offensive questions have embarrassed the country.

Question No. 8 asked by the Ministry of Finance also asks whether Nepal has become a member of IPS (Indo-Pacific Strategy). The country is debating whether the MCC agreement is under IPS. Question 8 asks, "Has Nepal become a member of IPS or can it become a member?"

Similarly, in points 'six', 'd', and 'n' of 11, the question has been asked as to how the agreement will affect Nepal's sovereignty, national existence, and sovereignty. "Doesn't the provision to terminate the agreement if the current US law and future policy are violated shows that Nepal's own existence, sovereignty, and sovereignty are under threat?" Question number 11 is stated in point 'six'.


Similarly, point 'D' asks, 'What is the reason behind calling this agreement international law in a way that affects the law and order and sovereignty of Nepal due to the weakness of Nepal's administrative system and monitoring system?' The Government of Nepal itself has stated that the agreement has thus affected Nepal's sovereignty.


Point 'N' once again asks how the provision of invalidation of Nepal's law in case of conflict with the MCC agreement affects sovereignty. "As far as the laws of Nepal are in conflict with the agreement, how does the provision of invalidation of Nepal's laws affect our sovereignty?" There is a question. In the same question, "Can the constitution and law of Nepal be suspended on the basis of an instrument made by an ordinary employee?" That is also asked.


Former Secretary Madhurman Acharya said that it was up to Nepal to find out for itself instead of asking the United States whether it was in line with Nepal's sovereignty or the law. "It is not a matter of asking others whether it is in Nepal's national interest or not and whether it is against the sovereignty of the law, it is a matter of knowing for oneself," he said. "What kind of diplomacy is this?"


MP Deepak Prakash Bhat, who is also a member of the International Relations Committee, said it was up to him to decide whether the MCC would serve the national interest or not or whether it would adversely affect Nepal's sovereignty. "Those who know about international law or the group at the responsible level of the party who are studying this issue should be asked whether it is in the national interest or not," Bhatta said. It is up to them to study whether their condition is justified, not to ask the United States. How can he say that he is against you? We will study what the long-term impact will be. '


Last year, the finance ministry wrote a letter to the MCC asking 11-point questions about the agreement. MCC Vice President Fatima Sumar has responded by addressing Finance Minister Janardan Sharma. She is coming to Nepal on Thursday.


MCC's answer to Nepal's question


Question 1: What is the basis for the selfless support behind the agreement with MCC?


Answer: The objective of MCC is to reduce poverty through economic growth. MCC's goal in Nepal is to rapidly improve the living standards of Nepali citizens. MCC Nepal Compact is a grant provided by the Government of Nepal to Nepal for the completion of selected power transmission and road maintenance projects that are considered important for the country's economic growth. If the grant amount is not misused in violation of the terms of the compact, the amount will not be refunded.


Question 2: What is the basis for saying that Nepal is not under military strategy because it is a priority?


Answer: First, US law applicable to the MCC (Millennium Challenge Act-2003) prohibits the MCC from using grant funds for any military purpose. The compact is clear about this legal restriction. Therefore, there is no connection between this compact and any military alliance or security strategy. To be eligible for selection by the MCC Board of Directors, any country must be (1) classified by the World Bank as a low-middle income country and (2) pass the MCC's annual index scorecard based on equitable and democratic governance, investment in the people and economic freedom.


Question 3: Is the agreement with MCC in line with Nepal's own needs and Nepal's own demands?


Answer: The transmission line identified by Nepal's own transmission line master plan 2015 and later reaffirmed by the transmission line development plan 2017 as a necessity was included in the MCC Nepal Compact. Recognizing the importance of the project in the development of Nepal, the Government of Nepal has declared the MCC Nepal Compact Power Transmission Project a project of national pride.


Question 4: Why is it necessary to call the general type of grant given by the US to Nepal an 'international agreement'? However, the inclusion of the MCC agreement as an international agreement seems to be an attempt to weaken Nepal's constitution and law. According to Article 7.1 of the agreement, what is the basis for saying that it is not?


Answer: Nepal's constitution is above MCC Nepal Compact. The MCC is an international agreement with all MCC partner countries guided by the principles of compact international law. The effect of keeping the compact at the level of international agreement is that the implementation of compact projects will proceed in accordance with the law of Nepal, except in rare cases where it conflicts with certain provisions of local law. In such rare cases, compact projects are implemented in accordance with the terms of mutual agreement and the constitution of Nepal.


Question 5: Many development constructions and investment agreements do not seem necessary for parliamentary approval. Why is it necessary to ratify this agreement?


Answer: The Government of Nepal, through the Ministry of Law, Justice, and Parliamentary Affairs, concluded that parliamentary approval is required in accordance with Nepali law for a compact international agreement to be reached.


Question 6: After the parliamentary approval of the agreement, why the parliamentary approval is not required for the amendment of the part of the agreement or the project?


Answer: The MCC Nepal Compact, MCC, and other bodies of the Government of Nepal, including the Ministry of Law, Justice, and Parliamentary Affairs, after extensive discussions in September 2017 (September 2074). The MCC Nepal Compact, which has already been signed, cannot be amended now.


Question 7: Is MCC under IPS?


Answer: No, MCC Nepal is not an agreement under the compact Indo-Pacific strategy. MCC Compacts are agreements between the MCC and the partner government. The strong relationship between the United States and Nepal predates the Indo-Pacific strategy.


Question 8: Has Nepal become a member of IPS or can it become a member?


Answer: MCC Nepal is not an agreement under the Compact Indo-Pacific Strategy. MCC Compacts are agreements between the MCC and the partner government. Any decision of Nepal regarding the Indo-Pacific strategy is separate and independent from the MCC Nepal Compact.


Question 9: How is it possible that MCC was formed in 2004 but IPS was formed in 2017?


Answer: The MCC was established in 2004 to focus on poverty reduction through economic growth in countries committed to popular values ​​such as the rule of law, investment in the people, and economic freedom. The MCC Nepal is not an agreement under the Compact Indo-Pacific Strategy, nor is it part of any US military strategy.


Question 10: Why are the agreements made after MCC Compact not made public?


Answer: MCA-Nepal is run by a Board of Directors comprising Nepali government officials and members of Nepal's private sector, civil society, and community leadership. The program implementation agreement signed on September 29, 2019, has been publicly available on the MCA-Nepal's website since its inception.


Question 11: How should the following clauses in the agreement be clarified? According to Article 2.8 of the agreement, how justifiable is it to exempt anyone working in a project that receives a foreign-level remuneration facility from any kind of tax?


Answer: The Compact's tax exemption provision ensures that US ५० 500 million in grants are made available for the implementation of projects in the interest of the Nepali people.


Doesn't the fact that 26 percent of the investment will be from Nepal but the intellectual knowledge from it will belong to MCC as a whole does not threaten Nepal's sovereignty?

Answer: The Government of Nepal owns all intellectual property created in connection with the Compact Program. MCC has no right to such intellectual property.


Doesn't the provision to end agreements that violate current US law and future policies not infringe on Nepal's sovereignty, given that its very existence and sovereignty are under US control?

Answer - the United States in violation of law or policy to any work that I could not use the grant for the MCC Article 5.1 (b) (3) has been emphasized. The purpose of this article is only to limit the use of MCC grants, but it does not create any obligation or limitation on the sovereignty of the Government of Nepal in the case of assistance other than MCC.


What are the reasons behind calling the agreement an international law that affects the law, governance, and sovereignty of Nepal due to the weakness of Nepal's administrative system and monitoring system?

Answer: Nepal's constitution is above MCC Nepal Compact. The effect of keeping the compact at the level of international agreement is that the implementation of compact projects will proceed in accordance with Nepal's law, except in rare cases where local law conflicts with certain provisions. In such rare cases, compact projects are implemented in accordance with the terms of the mutual agreement and the constitution of Nepal.


According to Article 7.1 of the agreement, to the extent that the law of Nepal is in conflict with the agreement, the effect of the law of Nepal being invalid, what effect does it have on our sovereignty?

Answer: Nepal's constitution is always above the compact of MCC Nepal. In addition, the Government of Nepal through the Ministry of Law, Justice, and Parliamentary Affairs has reviewed all the provisions of the MCC Nepal Compact Article 7.1 and concluded that the provisions of the Compact are not in conflict with the laws of Nepal.

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