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Nepal Protesters Oppose US-Funded Infrastructure

The Millennium Challenge Corporation, a US government aid agency, provided $500 million in grants for a power line and road project

Demonstrators throw stones at police during a protest against the proposed grant on Wednesday. Photo: AFP.


Nepal police used teargas and water cannon to disperse protesters objecting to a US-funded infrastructure programme, officials said on Wednesday.

The Millennium Challenge Corporation (MCC), a US government aid agency, agreed in 2017 to provide $500 million in grants to fund an electricity transmission line and a road improvement project in the South Asian nation.

The funds do not need to be repaid, and Washington says they come with no strings.

But opponents say that the agreement would undermine local laws and Nepal’s sovereignty, as Kathmandu would not have sufficient oversight over the board directing projects.

Major political parties, including those forming the ruling coalition, are divided over whether to accept the money.

Officials said they used minimum force to disperse about 3,000 protesters from small communist factions, split into groups.

“We have used minimum force to stop protesters from marching on parliament,” police spokesman Bishnu Kumar said.


Nine Police Injured

Kathmandu district official Deepak Paudel said 123 activists had been detained and nine police personnel injured in the melee. “There is no report of major injuries among the protesters,” he said.

Opponents of the MCC grant agreement say the funds are not in the interest of Nepal.

“It undermines our national interest, sovereignty, welfare … and must be amended before it is accepted,” Narayan Kaji Shrestha, a senior Communist Party of Nepal (Maoist Centre) leader, said.

The communists are a major ally in the five-party ruling alliance headed by prime minister Sher Bahadur Deuba.

Prakash Sharan Mahat, a spokesman for Deuba’s centrist Nepali Congress party, said the MCC grant was “for Nepal’s economic development and not against the national interest”.

“The $500 million is a grant, with no strings attached, no interest rates, and no hidden clauses,” a US embassy statement said. “All Nepal has to do is commit to spend the money, transparently, for the projects that have been agreed upon.”


  • Reuters, with additional editing by George Russell




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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


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