Feb 20, 2022: According to a report by Reuters, police in Nepal’s capital Kathmandu fired tear gas and water cannons to disperse protesters against the U.S-funded infrastructure program, which was presented to parliament for approval on Sunday.

He said some protesters were injured in the clashes. The Millennium Challenge Corporation (MCC), a US government aid agency, agreed in 2017 to provide a 500 million grant for a 300 km (187 mi) power transmission line and road improvement project in Nepal.

Government officials said the grant would not have to be repaid and no conditions were attached, but opponents said the agreement would undermine Nepal’s laws and sovereignty because lawmakers would have insufficient oversight of the board directing the infrastructure project.

Despite strong protests, Communications and Information Technology Minister Gyanendra Bahadur Karki introduced the agreement in parliament, saying the projects would benefit 24 million of Nepal’s 30 million people.

The U.S embassy in Nepal said, “This project was requested by the Nepali government and the Nepali people and designed to transparently reduce poverty and grow the economy of Nepal,”

“Whether Nepali leaders ratify MCC is a decision for Nepal to make, as a sovereign democratic nation, and Nepal’s decision alone,” it added.

Major political parties, including members of the ruling coalition, are split over whether to accept or reject the US grant money.