China's protracted lobbying efforts aimed at blocking US Millennium Challenge Corporation grant to Nepal

Kathmandu [Nepal], February 21 (ANI): China's protracted lobbying efforts are aimed at blocking US Millennium Challenge Corporation (MCC) USD 500-million infrastructure grant project to Nepal.
The problems being faced by MCC in Nepal serve as an ideal case study for understanding how China stabs its competitors' development proposals for smaller and needy countries, reported Just Earth News.
The MCC is a US Foreign Assistance Agency that aims to fight poverty. Nepal had signed the MCC agreement in 2017. With a budget of USD 500 million contributions, the MCC Nepal Compact consists of two projects: a 300-km 400 kilovolt electricity transmission line and upgrading a 100-km east-west highway.
Through the transmission line, Nepal would be able to export electricity to India from its hydro-power projects. The projects would predominantly be executed by Nepali contractors and workers, thus generating local business and employment, reported Just Earth News.
Despite being a well-meaning and focused program, MCC has failed to take off in Nepal as it is yet to be ratified by the country's Parliament.
Moreover, Nepal's ever-bickering politicians have further muddled the issue with a group bent on opposing all constituents of the program. Ironically, some members of this group fail to acknowledge the clearly visible problems in the projects pushed by China under its Belt and Road Initiative.
But they fail to understand that China lures them with debt financing linked with superfluous and unviable infrastructure projects. After these projects get stuck or shelved because of their inherent problems or motivated approach of the financer, the leftover debt imprint is too overwhelming for the vulnerable client countries, reported Just Earth News.
After a few commercial setbacks, the real Chinese game unfolds for these countries in the form of an unavoidable debt trap. This trap subsequently dictates future international dealings by the trapped countries including financing from sources other than China.
To counter competing financing from its adversaries, China deploys several means including misinformation campaigns and manipulation of local politicians in the target countries, reported Just Earth News.
Former Finance Minister and Nepali Congress leader Ram Sharan Mahat on Feb 15 asserted that the MCC is in the interest of Nepal and it needs to be endorsed at the earliest.
Noting that the program has wrongly been made a sponsored propaganda citing it as anti-national; he underlined the need to cut through the misconception against the project. Nepal's Leftist political parties however continue to oppose the pact alleging it to be aimed at countering China.
Meanwhile, the US has now urged Nepal to ratify the program by February 28 failing which Washington could review its ties with Kathmandu.
Nepal faces several risks associated with turning down the MCC offers. Rejection of it would be tantamount to refusing a substantial amount of money at a time when Nepal's economy is suffering due to the pandemic, rising energy prices, and recession in the Gulf and other countries from where migrant workers remit money to Nepal. (ANI)