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The US will resume its grants to Nepal to fund two major infrastructure projects

Authorities announced on Monday that the United States has resumed funding two major infrastructure projects previously suspended after President Donald Trump suspended foreign development assistance.

The U.S. Government Aid Agency, the Millennium Challenge Corporation, agreed to provide $500,000,000 in 2017 for a project to improve roads and build a transmission line in the Himalayan country. This is one of the poorest countries in the world.

The projects were put on hold when Trump, on his return to the White House in January, ordered a 90 day pause in the foreign development assistance. This was pending an evaluation of the efficiency and consistency of the U.S. Foreign Policy.

The U.S. Government has completed its review of assistance provided under the MCC Nepal Compact, according to a statement released by Nepal's Finance Ministry.

The statement did not provide any details. "Information received has recommended the implementation of MCC Nepal Compact," it said.

The transmission line was intended to promote the power trade between Nepalese and India's neighbour.

The U.S. Embassy in Nepal confirmed this development in a tweet on its official X account, adding that "the project supports prosperity and regional security of energy by building transmission infrastructure for electricity and improving the road networks".

Nepali authorities have announced that the projects will resume.

The Finance Ministry did not mention seven other projects that were funded by USAID and stalled last February in the fields of education, health and agriculture.

The Trump administration's funding cuts have led to the shutdown of USAID and the termination of thousands of its staff.

Nepal's opposition parties said that the MCC grant would undermine sovereignty in 2022 as Kathmandu wouldn't have enough control over projects.

The projects were approved by the Parliament in the same year, with a majority vote. (Reporting and editing by Jan Harvey; Gopal Sharma, reporting)

(source: Reuters)