Kathmandu. KATHMANDU: The Government of Nepal and the Federal Republic of Germany today signed two agreements on financial assistance and technical assistance.

The MoUs aim to support Nepal’s energy, health, agriculture, governance and inclusive development priorities. Dhaniram Sharma, joint secretary at the Finance Ministry, and Udo Volz, German ambassador to Nepal, signed the agreement on behalf of the German government.

Under the financial assistance agreement, the German government has committed up to 20 million euros to support the Power Distribution Strengthening Program.

The project will focus on upgrading and strengthening the e-distribution system in Nepal. This will ensure reliable and effective power supply across the country. The project will be implemented by the Nepal Electricity Authority. For this, an agreement will be signed between Nepal Electricity Authority and German Development Bank. The agreement should be completed within five years i.e. by September 5, 2029.

The technical cooperation agreement is based on the long-standing framework agreement signed in 1974 and revised in 2009. Under this, Germany will spend up to 21 million euros to further upgrade quality infrastructure in the health sector, while providing continued support for national gender equality and social inclusion strategies.

In agriculture and private sector development, it will promote inclusive and climate-resilient economic development. In the governance sector, projects based on revenue sector reforms will be pursued that will contribute to sustainable development.

In addition, it will provide advisory and technical assistance through the Study and Expert Fund. The technical assistance agreement will be completed within five years i.e. by 5 September 2029.

Dhaniram Sharma, joint secretary at the Finance Ministry, while expressing gratitude for Germany’s continued support, said that the agreements reflect the depth and stability of Nepal-Germany relations and reflected the shared commitment to inclusive and sustainable development. On the occasion, he extended his sincere thanks to the Government and people of Germany for their long-term cooperation and significant contribution to the socio-economic development of Nepal. Ambassador of the Federal Republic of Germany Udo Volz said that the new commitment would further strengthen cooperation with Nepal and its people in energy, sustainable economic development and health sectors.