Kathmandu, Dec. 6 -- Millennium Challenge Corporation of the United States has suspended payment of $500 million to the Electricity Transmission and Transportation Project pending ratification of Nepal Compact by Parliament.

Nepal Compact, an agreement signed between the US agency and the Nepal government in 2017, comes with a prerequisite that it must be endorsed by Parliament and will prevail over domestic laws.

"The funds have been halted by the donor agency as the government is yet to meet the terms of the agreement it had signed," said Kumar Pandey, a board member of Millennium Challenge Account Nepal, the implementing agency of the Electricity Transmission and Transportation Project formed through a cabinet order.

According to Pa...