October 8, Kathmandu – The Government of Nepal and the Federal Republic of Germany signed two important agreements related to financial and technical cooperation at the Ministry of Finance today.

On behalf of the Government of Nepal, the agreements were signed by Joint Secretary of the Ministry of Finance, Dhaniram Sharma, and on behalf of the German Government, by the German Ambassador to Nepal, Udo Voelz. According to the Ministry, the agreements aim to support Nepal’s priorities in the areas of energy, health, agriculture, governance, and inclusive development.

Under the financial cooperation agreement, the German government has committed to providing up to 20 million euros  for the Power Distribution Strengthening Program. This project will focus on upgrading and strengthening Nepal’s electricity distribution system.

The project will be implemented through the Nepal Electricity Authority (NEA). A separate implementation agreement will be signed between NEA and the German Development Bank (KfW). According to the agreement, the project must be completed by September 5, 2029.

Similarly, the technical cooperation agreement is an update to the long-standing cooperation framework established in 1974, and revised in 2009. Under this agreement, the German government will support various sectors with assistance worth 21 million euros.

The project will support the development of quality infrastructure in the health sector, strengthen the national strategy for gender equality and social inclusion, and also contribute to the promotion of agriculture, private sector development, and climate-resilient economic growth.

Through the technical cooperation, studies, research, advisory services, and expert support will also be provided. This agreement also aims to be fully implemented by September 5, 2029.

At the event, Joint Secretary Sharma expressed gratitude for Germany’s continued support. German Ambassador Voelz stated that this new commitment further strengthens the collaboration between Germany and the people of Nepal in energy, sustainable economic development, and health sectors.