The German government has committed to providing €20 million in support for power distribution strengthening through the Nepal Electricity Authority, and the project must be completed by 2029.
- Today, Nepal and Germany signed two important agreements on financial and technical cooperation.
- The German government has committed to providing support worth approximately €41 million in the areas of electricity distribution, health, agriculture, private sector development, and governance.
- These agreements are expected to further strengthen Nepal-Germany relations and contribute to sustainable and inclusive development.
Kathmandu — Today, the governments of Nepal and Germany signed two important agreements. The agreements were signed by Dhaniram Sharma, Joint Secretary of the Ministry of Finance, on behalf of the Government of Nepal, and Udo Eugen Volz, German Ambassador to Nepal, on behalf of the German government.
Under financial assistance, the German government has committed up to €20 million (approximately NPR 2.8 billion) in support of the ‘Power Distribution Strengthening’ program.
This project will be implemented through the Nepal Electricity Authority, aiming to upgrade and strengthen the electrical distribution system across the country. According to the agreement, the project must be completed by September 5, 2029.
The technical cooperation agreement is based on the long-term framework agreement signed in 1974 and its revised version of 2009. Under this, the German government will provide support of up to €21 million, aiming to strengthen health system infrastructure while supporting gender equality and socially inclusive strategies in the health sector. Support will also be provided in agriculture and private sector development through programs promoting inclusive and climate-resilient economic growth.
In the governance sector, the Revenue Sector Reform Project will be implemented, which is stated in the press release to contribute to sustainable development. Additionally, advisory and technical support will be provided through studies and expert funds. The technical cooperation is also to be completed within five years, by September 5, 2029.
Joint Secretary Sharma of the Ministry of Finance expressed gratitude for Germany’s continued support, stating that these agreements will deepen Nepal-Germany relations and reflect the shared commitment of both countries to sustainable and inclusive development.
Similarly, Ambassador Udo Eugen volz stated that the new commitments will further strengthen cooperation with Nepal in the areas of energy, sustainable economic development, and health.
Kantipur
