Germany has pledged a grant assistance of €41 million to Nepal to support projects in energy, sustainable economic development, and health.
A technical and financial cooperation agreement was signed in Kathmandu on Wednesday between German Ambassador to Nepal Udo Volz and Joint Secretary of the Ministry of Finance’s Foreign Aid Coordination Division, Dhani Ram Sharma. The agreement follows commitments made during the bilateral negotiations held in Berlin on September 4–5, 2024.
Under the agreement, the Power Distribution Strengthening Program (PoDiSP) will receive an additional €20 million, complementing an earlier grant of €10 million. The program aims to improve electricity distribution and enhance consumption efficiency in and around Pokhara, Butwal, and Bharatpur. Similarly, an additional €12 million has been allocated to strengthen the Green Resilient Agricultural-centered Private Sector Economic Development (GRAPE) project.
In the health sector, the Strengthening of Quality Infrastructure for the Health System project will be supported with €1.5 million, focusing on improving quality standards and capacity within Nepal’s health services.
These projects will be implemented by German development agencies including GIZ, KfW, and PTB. Germany will continue to adopt the Team Europe approach, working alongside the European Union and other European partners in Nepal’s key development programs.
Ambassador Volz expressed that the new commitments further deepen Germany’s long-standing cooperation with Nepal, emphasizing shared priorities in energy, sustainable growth, and health.
Joint Secretary Sharma noted that the agreements reflect the strength of Nepal-Germany relations and reaffirm Germany’s continued support for Nepal’s inclusive and sustainable development goals.
