Nepal and Germany today signed a technical and financial cooperation agreement on 41 million euros in grant.
German Ambassador to Nepal Udo Volz and Joint Secretary and the head of the Foreign Aid Coordination Division at the Ministry of Finance Dhani Ram Sharma signed the agreement on behalf of their respective governments, reads a statement issued by the German Embassy in Kathmandu.
The agreement builds upon the commitments made during the government-to-government negotiations held in Berlin on September 4-5, 2024, in accordance with international law.
The agreement encompasses several projects in the areas of energy, sustainable economic development and health, according to the statement.
One is the Power Distribution Strengthening Program (PoDiSP)which aims to enhance electricity distribution and consumption in and around the cities of Pokhara, Butwal, and Bharatpur.
An additional 20 million euros has been allocated for this initiative to a previously granted 10 million euros.
The agreement also includes an additional 12 million euros to strengthen the GRAPE (Green Resilient Agricultural-centeredPrivate Sector Economic Development) project. Another notable project is the Strengthening of Quality Infrastructure for the Health System, with a budget of 1.5 million euros.
The projects will be implemented by the German Implementing Agencies – Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), GMBH, Kreditanstalt für Wiederaufbau (KfW), and Physikalisch- Technische Bundesanstalt (PTB).
During the agreement signing ceremony, German Ambassador Udo Volz expressed his appreciation of the longstanding German-Nepal Development Cooperation. “With these new commitments, we further deepen our cooperation with the country and the people of Nepal in the areas of Energy, Sustainable Economic Development and Health,” the ambassador said.
Joint Secretary Sharma stated that the agreements reflect the strength of Nepal-German relations and demonstrate the shared commitment to inclusive and sustainable development. "We are deeply grateful for Germany’s continued support in key sectors that matter most to the people of Nepal," he noted, the statement further reads.
The agreement signing ceremony was held at the Ministry of Finance at Singha Durbar.
Representatives from GIZ, KfW and PTB, and from relevant Nepali line ministries were also present on the occasion.
