KATHMANDU: Today, the Government of Nepal and the Federal Republic of Germany signed two significant agreements on financial and technical cooperation.

The agreements were signed at the Ministry of Finance by Dhaniram Sharma, Joint Secretary of the Ministry on behalf of the Government of Nepal, and Udo Eugen Volz, Ambassador of the Federal Republic of Germany to Nepal.

The Ministry stated that these agreements aim to support Nepal’s priorities in energy, health, agriculture, governance, and inclusive development.

Under the financial cooperation agreement, the German government has committed up to €20 million for the Power Distribution Strengthening Program.

The project will focus on upgrading and strengthening Nepal’s electricity distribution system.

The project will be implemented through the Nepal Electricity Authority, and an implementation agreement will also be signed between the Nepal Electricity Authority and the German Development Bank.

The agreement specifies that the project’s implementation must be completed within five years, by 5 September 2029.

The technical cooperation agreement is based on the long-term framework agreement signed in 1974 and the revised agreement of 2009.

Under this agreement, Germany is expected to provide support worth up to €21 million across various sectors.

The project will contribute to the health sector by providing continuous support for national gender equality and social inclusion strategies, and by further enhancing quality infrastructure in the health system.

It will also support programs aimed at promoting agriculture and private sector development, inclusive and climate-resilient economic growth.

The project will provide advisory and technical assistance through additional studies and expert funds.

The implementation of this technical cooperation agreement is also set to be completed within five years, by 5 September 2029.

During the program, Joint Secretary Sharma expressed gratitude for Germany’s ongoing support.

Ambassador Volz highlighted that this new commitment will further strengthen cooperation between Nepal, the German government, and the Nepali people in energy, sustainable economic development, and the health sector.