Kathmandu: Nepal and Germany have formalized two significant agreements aimed at enhancing financial and technical cooperation between the two nations. The agreements were signed at a program hosted by the Ministry of Finance, where Joint-Secretary Dhaniram Sharma represented the Government of Nepal and Ambassador Udo Volz represented the German government.
According to National News Agency Nepal, the agreements focus on fortifying Nepal’s priorities in energy, health, agriculture, and inclusive development. Under the Financial Aid Agreement, Germany has pledged support of up to 20 million Euros for Nepal’s Power Distribution Strengthening Programme. This initiative is set to upgrade and enhance the country’s power distribution infrastructure, with implementation overseen by the Nepal Electricity Authority in collaboration with the German Development Bank. The agreement is slated for completion by September 2, 2029.
The technical cooperation agreement traces its origins to a longstanding framework agreement from 1974, later amended in 2009. Germany’s commitment under this agreement is projected to reach up to 21 million Euros. This support will benefit various sectors, including the health sector, by advancing strategies for national gender equality and social inclusion, and improving health infrastructure quality.
The project is also designed to bolster agriculture, the private sector, and promote inclusive, climate-resilient economic growth. It will offer consultative and technical assistance through further studies and an expert fund. The technical assistance agreement is expected to be fulfilled by September 5, 2029.
During the signing ceremony, Joint Secretary Sharma conveyed appreciation for Germany’s ongoing support in Nepal’s development efforts. Ambassador Volz remarked that this latest commitment reinforces Germany’s partnership with Nepal and its people in energy, sustainable economic development, and health sectors.