Kathmandu. KATHMANDU: The Government of Nepal and the Federal Republic of Germany signed an agreement on financial assistance and technical assistance today. The agreements aim to support Nepal’s energy, health, agriculture, governance, and inclusive development priorities.
Dhaniram Sharma, joint secretary at the Finance Ministry, and Udo Volz, German ambassador to Nepal, signed the agreement on behalf of the German government.
Under the financial cooperation agreement, the German government has pledged up to 20 million euros to support the Power Distribution Strengthening Program. The project will focus on upgrading and strengthening the e-distribution system in Nepal. This will ensure reliable and efficient power supply across the country.
The project will be implemented by the Nepal Electricity Authority (NEA) and an implementation agreement will be signed between Nepal Electricity Authority (NEA) and the German Development Bank (KfW). The Agreement should be implemented within five years i.e. by 5th September 2029.
The technical cooperation agreement is based on the long-standing framework agreement signed in 1974 and revised in 2009. Germany will, with an estimated commitment of up to €21 million, to assist in the following areas
In the health sector, to further standardize quality infrastructure in the health system, providing continued support for the National Gender Equality and Social Inclusion Strategy (S2GESI).
In agriculture and private sector development, the GRAPE (Green Resilient Agricultural-centered Private Sector Economic Development) program to promote inclusive and climate-resilient economic development.
In the governance sector, projects based on revenue sector reforms will be pursued that will contribute to sustainable development.
In addition, providing advisory and technical assistance through the “Studies and Experts Fund”. The technical assistance agreement will be finalized within five years, i.e., by 5 September 2029.
Dhaniram Sharma, joint secretary at the Ministry of Finance, expressed gratitude for Germany’s continued support and said that the agreements reflect the depth and stability of Nepal-Germany relations and reflected shared commitment to inclusive and sustainable development.
On the occasion, he extended his sincere thanks to the Government and people of Germany for their long-term cooperation and significant contribution to the socio-economic development of Nepal. Ambassador of the Federal Republic of Germany Udo Volz said that the new commitment would further strengthen cooperation with Nepal and its people in energy, sustainable economic development and health sectors.
