The opposition`s argument that the deal should be frozen until after the elections also carries serious risks of losing the subsidy entirely, given that Sri Lanka was recently listed as an upper middle income. Late last month, sri Lanka`s Cabinet of Ministers authorized a major breakthrough in the implementation of the Millennium Challenge Corporation`s (MCC) $480 million grant and released the final draft grant agreement for public review. However, another part of the ruling party, led by Prime Minister KP Sharma Oli, has defended the pact and wants the current session of the House to ratify it. Nepal`s opposition Congress also argued that the agreement should be approved without delay. In April 2018, AGOA and mca modernization act authorized MCC to enter into simultaneous pacts for cross-border economic integration, trade and cooperation. In December 2018, MCC`s Board of Directors elected five West African countries as simultaneous acts: Benin, Burkina Faso, Côte d`Ivoire, Ghana and Niger. In 2019, in response to the Ghanaian government`s decision to terminate the concession contract between Electric Company of Ghana Ltd (ECG) and private operator Power Distribution Services Ghana Ltd (PDS), Ghana did not reduce regional investment. The document makes it clear that the Sri Lankan government is “primarily responsible for monitoring and managing the implementation” of the projects and that a signed legal opinion from the Sri Lankan GA must be sought before the agreement enters into force. The Pacts are five-year agreements between MCC and an eligible country to finance specific programmes aimed at reducing poverty and stimulating economic growth. MCC`s unique model for the development of compact programs reflects the principles that marked the creation of the Agency in 2004. These include the principle of country-specific participation, the belief that aid is most effective if it is based on a partnership (or pact) in which recipient countries take greater responsibility for their own economic development.
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