Kathmandu, Sept. 8 -- The Millennium Challenge Corporation headquarters has responded to concerns raised by Nepal's Finance Ministry. The response on Wednesday comes on the eve of the scheduled visit to Nepal by Fatema Z Sumar, vice president of the Department of Compact Operations, as the US programme, under which Nepal would receive $500 million in grants, has become a cause for controversy in Nepal, with Nepali political parties sharply divided over its proposed parliamentary ratification.

In its 13-page response, the MCC has attempted to furnish clarifications to 11 concerns raised by the Finance Ministry, including whether the MCC agreement is above Nepal's constitution and whether it undermines Nepal's sovereignty.

The Ministry of...