Germany commits €56 mn grant assistance to Nepal for energy and social initiatives

Kathmandu: Nepal and Germany have formalized a significant commitment, with Joint Secretary Shreekrishna Nepal of the Ministry of Finance and German Ambassador Thomas Prinz signing Financial and Technical Cooperation Agreements. The grant assistance, totaling up to 56 million Euros, was pledged by the Federal Republic of Germany in 2022.

According to a statement from the German Embassy in Kathmandu, the Financial Cooperation Agreement aims to bolster both the private and public sectors. It will facilitate the expansion of energy transmission lines, promote solar energy, contribute to gender equality, and enhance maternal care and childcare in remote areas of Nepal.

The Technical Cooperation Agreement aligns with the goal of supporting gender equality and social inclusion in Nepal. It also focuses on local and provincial economic development, particularly in Western Nepal in collaboration with the European Union and Finland.

Additionally, the agreement will promote renewable energy, energy efficiency, strengthen quality infrastructure for sustainable economic development, and support Nepal’s health sector strategy. The German Embassy’s statement highlighted the long-standing diplomatic relations between Nepal and Germany, emphasizing Germany’s consistent contribution to Nepal’s development in various sectors, including energy, health, and governance.
The grant reaffirms Germany’s commitment to supporting Nepal in achieving its Sustainable Development Goals. Ambassador Thomas Prinz expressed the cherished friendship between Germany and Nepal, noting that Germany has been a steadfast supporter of Nepal’s hydropower and energy initiatives. The grant aims to further contribute to Nepal’s progress and prosperity through collaborative efforts and support.