Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a significant boost to Nepal’s development efforts, the Federal Republic of Germany has extended a grant of €41 million (approximately NPR 5.9 billion) to support projects in energy, sustainable economic development, and health.
The agreement was signed today at the Ministry of Finance in Singha Durbar between Ambassador Udo Volz, the German Envoy to Nepal, and Mr. Dhani Ram Sharma, Joint Secretary and Head of the Foreign Aid Coordination Division. The financial and technical cooperation pact builds upon commitments made during the bilateral negotiations held in Berlin on September 4–5, 2024, reaffirming Germany’s long-standing partnership with Nepal under international cooperation frameworks.
The new financial package strengthens ongoing initiatives including the Power Distribution Strengthening Program (PoDiSP), aimed at enhancing electricity distribution and consumption in and around the cities of Pokhara, Butwal, and Bharatpur. Germany has allocated an additional €20 million, supplementing an earlier €10 million grant for the project.
Another €12 million will be directed towards the GRAPE (Green Resilient Agricultural-centered Private Sector Economic Development) project, which focuses on promoting climate-resilient agriculture and private sector-led rural economic growth. Similarly, €1.5 million has been dedicated to the Strengthening of Quality Infrastructure for the Health System project to enhance health sector standards and facilities.
Ambassador Udo Volz expressed appreciation for the continued partnership between the two nations, stating, “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 Dhani Ram Sharma highlighted that the agreements represent the shared vision for inclusive and sustainable growth, noting, “We are deeply grateful for Germany’s continued support in key sectors that matter most to the people of Nepal.”
Germany continues to adopt a Team Europe approach in Nepal, collaborating closely with the European Union (EU) on programs such as GRAPE and PoDiSP. The projects will be implemented through renowned German development agencies — Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Kreditanstalt für Wiederaufbau (KfW), and Physikalisch-Technische Bundesanstalt (PTB).
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