Germany to support Nepal in governance and development

Kathmandu, Oct. 8

Nepal and Germany signed two significant agreements on financial and technical cooperation to support Nepal in energy, health, agriculture, governance and inclusive development.

The Ministry of Finance (MoF) said in a statement on Wednesday that Joint Secretary of the MoF Dhaniram Sharma and Ambassador of Germany to Nepal, Udo Volz, signed the agreements.

Under the financial cooperation agreement, the German Government has committed up to 20 million Euros to the Power Distribution Strengthening Programme. This project is focused on upgrading and reinforcing Nepal’s electricity distribution system to ensure a reliable and efficient power supply throughout the country.

"The project will be implemented through the Nepal Electricity Authority (NEA), and a separate implementation agreement will be signed between the NEA and the German Development Bank (KfW). The project is expected to be completed within five years, by 5 September 2029," read the statement.

The technical cooperation agreement is based on the long-standing Framework Agreement signed in 1974 and its amendment in 2009. Under this agreement, Germany has pledged an estimated 21 million Euros to support Nepal in several key sectors.

In the health sector, the assistance will continue to support the National Strategy for Gender Equality and Social Inclusion (S2GESI), focusing on strengthening quality infrastructure within the health system.

Likewise, in agriculture and private sector development, the Green Resilient Agricultural-centred Private Sector Economic Development (GRAPE) programme will be promoted to encourage inclusive and climate-resilient economic growth. 

A project aimed at reforming the revenue system will be advanced, contributing to sustainable development. In addition, advisory and technical assistance will be provided through the Studies and Experts Fund. The implementation of this agreement is also to be completed within five years, September 2029.

Joint Secretary Sharma said that these agreements reflect the depth and stability of Nepal–Germany relations and demonstrate the shared commitment of both nations to inclusive and sustainable development. Speaking at the same event, German Ambassador Volz said that the new commitments have further strengthened cooperation with Nepal and its people, particularly in the fields of energy, sustainable economic growth, and health.

  Published in The Rising Nepal daily on 9 October 2025.