Things to know about ‘Interpretative Declaration’

KATHMANDU, Feb 27: The ruling alliance has decided to ratify the Millennium Challenge Corporation-Nepal Compact (MCC) with an ‘interpretative declaration’.

What is written in the declaration?

1) Being a part of the compact, Nepal shall not be bound by any of the United State’s strategic, military or security alliance including the Indo-Pacific Strategy.

2) Nepal understands that Section 2.7, Section 5.2 (b) (iii), Section 5.2 (b) (iv) of the compact are intended to apply only for the use of the MCC Funding and that the provisions do not and shall not obligate Nepal to comply with current or future United States’s law or policies for any purpose other than the use of the MCC Funding.

3) With reference to Section 3.2 (b) of the Compact, Nepal declares that the conduct of activities of Millennium Challenge Account Nepal Development Board will be regulated by the laws of Nepal and the Compact.

4) With reference to Section 3.2 (f) of the Compact, Nepal declares that MCC shall not have ownership over the Intellectual Property and that Nepal shall own and can fully enjoy all the Intellectual Property created under the Com[act program.

5) With reference to Section 3.5 of the Compact, Nepal declares that Implementation Letters shall be implemented within the scope of the Compact.

6) With reference to Section 3.8(a) of the Compact, Nepal declares that the audits of all activities and funds of MCA-Nepal shall also be conducted by the Office of the Auditor General in accordance with the prevailing laws of Nepal.

7) With reference to Section 5.1 (a) of the Compact, Nepal declares that Nepal has the right to terminate the Compact or MCC Funding by giving thirty days prior written notice if the Compact or the activities/program under the Compact violate Nepal’s law or policies.

8) With reference to Section 5.5 of the Compact, Nepal declares that provisions under the Compact which survive after the expiration, suspension or termination of the Compact will be relevant illustratively to the use of MCC Funding which remains outstanding including for evaluation of the project under the Compact, audits and settlement of taxes.

9) With reference to Section 7.1 of the Compact, Nepal declares that the Constitution of Nepal shall prevail over the Compact and further declares that the Compact and the programs/projects under the Compact shall be implemented by complying within the laws of Nepal and in accordance with the Compact.

10) With reference to Section 8.1 of the Compact, Nepal declares that the Electricity Transmission Project including all movable and immovable assets including lands associated with the Project shall be owned by the Government of Nepal or entities of the Government of Nepal.

11) With reference to the letter received by Nepal from the Millennium Challenge Corporation on 8 September 2022, Nepal understands the responses in that said letter of MCC shall aid in the interpretation and implementation of the Compact.