Nepal and Germany sign financial and technical cooperation agreements

October 8, Kathmandu: The Governments of Nepal and Germany signed financial and technical cooperation agreements today.

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

The agreements aim to support Nepal in the areas of energy, agriculture, sustainable economic development, governance, and inclusive development. Under the financial cooperation agreement, Germany has committed up to 20 million Euros to support the Power Distribution Strengthening Program (PoDiSp). This project will focus on upgrading and strengthening Nepal’s electricity distribution system and will be implemented through the Nepal Electricity Authority.

Similarly, the technical cooperation agreement is based on a long-term framework agreement signed in 1974 and amended in 2009, with an estimated commitment of up to 21 million Euros.

This will support projects in the health sector, national gender equality and social inclusion strategies, agriculture and private sector development, promotion of inclusive and climate-resilient economic development, and governance, particularly in revenue sector reforms.

Speaking after the signing, Joint Secretary Dhaniram Sharma stated that the agreements reflect the depth and stability of Nepal-Germany relations and demonstrate a shared commitment to inclusive and sustainable development.

German Ambassador Udo Volz remarked that this new commitment strengthens cooperation with Nepal and its people in the areas of energy, sustainable economic development, and health.