KATHMANDU: Nepal’s parliament approved a U.S. infrastructure grant of $500 million which critics say undermines the Himalayan nation’s sovereignty as protesters opposed to the proposed funds clashed with police, officials and witnesses said on Sunday.

Paliament Speaker Agni Sapkota said the aid agreement was approved by a majority vote of the Nepali lawmakers.

The Millennium Challenge Corporation (MCC), a U.S. government aid agency, agreed in 2017 to provide the aid in a grant to fund an electricity transmission line and road improvement project.

The aid does not need to be repaid and Washington says it comes without conditions.

Major political parties, including those in the ruling coalition, were divided over whether to accept the grant.

Opponents, wary of U.S. influence, said the aid would undermine Nepal’s laws and sovereignty as it will not have sufficient control over the projects.