The Government of Nepal and the Federal Republic of Germany today signed two significant agreements on financial and technical cooperation.

At the Ministry of Finance, the agreements were signed by Dhaniram Sharma, Undersecretary of the Ministry of Finance, on behalf of the Government of Nepal, and Udo Volz, Ambassador of Germany to Nepal, on behalf of the German government. According to the Ministry, these agreements aim to support Nepal’s priorities in energy, health, agriculture, governance, and inclusive development.

Under the financial cooperation agreement, Germany has pledged up to €20 million for the Power Distribution Strengthening Program. The project will focus on improving and reinforcing Nepal’s electrical distribution systems. Implementation will be carried out through the Nepal Electricity Authority (NEA), with a separate implementation agreement signed between NEA and the German Development Bank. The agreement specifies that the project should be completed within five years, by 5 September 2029.

The technical cooperation agreement is based on a long-term framework agreement initially signed in 1974 and revised in 2009. Under this agreement, Germany is expected to provide up to €21 million in support across multiple sectors.

The project aims to strengthen the health sector by supporting national gender equality and social inclusion strategies while enhancing quality infrastructure within the healthcare system.

Additionally, the program will support agriculture and private sector development, as well as inclusive and climate-resilient economic growth. It will provide advisory and technical assistance through further studies and expert funds. Like the financial agreement, the technical cooperation agreement is also set to be completed within five years, by 5 September 2029.

During the signing ceremony, Undersecretary Sharma expressed gratitude for Germany’s continued support. Ambassador Volz highlighted that this new commitment would further strengthen cooperation between Germany and Nepal in energy, sustainable economic development, and health, benefiting the people of Nepal.