The Government of Germany is providing Nepal with a grant of €41 million to support several projects in the areas of energy, sustainable economic development and health.

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 inked a technical and financial cooperation agreement to the effect on Wednesday. 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.

Of the projects, the Power Distribution Strengthening Program (PoDiSP) aims to enhance electricity distribution and consumption in and around the cities of Pokhara, Butwal, and Bharatpur. An additional €20 million has been allocated for this initiative to a previously granted €10 million. The agreement also includes an additional €12 million to strengthen the GRAPE (Green Resilient Agricultural-centered Private Sector Economic Development) project.

Another notable project is the Strengthening of Quality Infrastructure for the Health System, with a budget of €1.5 million. Wherever possible, Germany implements its projects in a Team-Europe approach, building on the strong collaboration with European partners. This is the case for Nepal, where Germany joins efforts with the EU in important programmes such as GRAPE and PoDiSP.

The projects will be implemented by the German Implementing Agencies - Deutsche Gesellschaft f¨¹r Internationale Zusammenarbeit (GIZ), GmBH, Kreditanstalt f¨¹r Wiederaufbau (KfW) and Physikalisch-Technische Bundesanstalt (PTB).

The German Envoy expressed his appreciation of the longstanding German-Nepali 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.¡±

Joint Secretary Sharma stated that the agreements reflect the strength of Nepali- 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 said.