Nepal, Germany Ink Financial Aid Agreement Worth EUR 24.3 Mn

Stepping up bilateral cooperation between Nepal and Germany, the two countries signed a financial grant agreement worth EUR 24.3 million.

Nepal Finance Ministry Secretary Rajan Khanal and German Ambassador to Nepal Roland Schäfer signed the agreement on behalf of both the nations.

Germany’s financial aid to Nepal will be utilized for the following projects:

• Improvement of Mother-Child Care in Urban Areas – Paropakar Maternity and Women’s Hospital, Kathmandu – Support in terms of construction and rehabilitation of health facilities to up to four satellite centers for
• Promotion of Solar Energy in Rural Areas – Support for Nepal’s solar energy technologies such as solar pumping systems for drinking water/irrigation, solar systems for public institutions – health centers, government offices and schools
• Sustainable Economic Development in Rural and Semi-Urban-Areas-MSME Finance/Phase 2 – Support in terms of improving access to sustainable and target-group oriented loans mainly in rural and semi-urban areas of Nepal. This support also includes loan sizes beyond microfinance but remain below traditional corporate finance.

So far, Germany has provided a total financial aid of EUR 979.6 million to Nepal since the establishment of Nepal-Germany ties in 1959. This includes bilateral, financial and technical cooperation.

Recently, Nepal signed landmark bilateral agreements with Mauritius and Japan, paving way for accelerated development in the country