Germany Commits €41 Million in Financial and Technical Aid to Nepal

Joint Secretary Dhaniram Sharma and German Ambassador to Nepal Udo Volz exchange MoU amid a programme at the Finance Ministry. RSS

Nepal and Germany have signed two agreements on financial and technical cooperation aimed at supporting Nepal’s priority sectors, including energy, health, agriculture, and inclusive development.

Joint Secretary Dhaniram Sharma signed the agreements on behalf of the Government of Nepal, while German Ambassador to Nepal Udo Volz signed on behalf of the Government of the Federal Republic of Germany at a ceremony held at the Ministry of Finance on Wednesday.

According to the Finance Ministry, Germany will provide up to 20 million euros in financial assistance for the Power Distribution Strengthening Programme under the financial cooperation agreement. The project will focus on upgrading and strengthening Nepal’s power distribution system and will be implemented through the Nepal Electricity Authority (NEA). An implementation agreement between NEA and the German Development Bank (KfW) will follow. The project is expected to be completed by September 2, 2029.

Under the technical cooperation agreement—based on the 1974 framework agreement and its 2009 amendment—Germany has committed up to 21 million euros in support over the next five years. The assistance will focus on strengthening Nepal’s health system, promoting gender equality and social inclusion in the health sector, and improving health infrastructure quality.

In addition, the cooperation will support programmes promoting agricultural and private sector development, inclusive and climate-resilient economic growth, and provide technical and consultative support through further studies and expert funds. The implementation period for the technical cooperation agreement will end on September 5, 2029.

On the occasion, Joint Secretary Sharma expressed appreciation for Germany’s continued assistance to Nepal’s development efforts. Ambassador Volz said the new commitment reinforces Germany’s partnership with Nepal in energy, sustainable economic development, and health. -- RSS

 

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