A Memorandum of Understanding (MoU) was signed in Washington today in regard to the US government's grant-assistance worth around Rs 50 billion to Nepal.
Finance Minister Gyanendra Bahadur Karki on behalf of the Nepal government and Deputy Secretary of State John J Sullivan from the US government signed on the MoU to this effect.
According to the MoU, a fund of around Rs 63 billion would be set up where Nepal government would contribute around Rs 13 billion and Rs 50 billion from the US government.
The fund would be mobilized to invest for the integrated plans of roads improvements and energy generation in Nepal.
Nepal is the only country in the South Asian region to receive the Millennium Challenge Corporation of the US government.
The MoU, also named as MCC Nepal Compact, is expected to lend substantial support to the reduction of poverty and construction of physical infrastructures in Nepal.