The governments of Nepal and Finland have signed a framework agreement for a public investment mobilization project aimed at strengthening socio-economic infrastructure in Nepal. The agreement, which will be funded through Finland’s Public Investment Facility Scheme, was signed by Dhani Ram Sharma, Head of the International Economic Cooperation Coordination Division at Nepal’s Ministry of Finance, and Riina-Riikka Heikka, Ambassador of Finland to Nepal.
The signing ceremony took place during a meeting between Finland’s Foreign Trade and Development Minister Ville Tavio and Nepal’s Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel at the Ministry of Finance on Thursday.
The project seeks to mobilize concessional finance to enhance infrastructure and promote sustainable development in Nepal. According to a press release from Nepal’s Ministry of Finance, the funding will support projects in key areas such as drinking water, waste management, energy, electricity, digitalization, meteorology, healthcare technology, and disaster management and rescue services.
Under the framework, the financial mobilization process will adhere to the Public Sector Investment Facility Guidelines, which are based on the Organization for Economic Cooperation and Development (OECD) standards. As Nepal is classified as a Least Developed Country (LDC), 50 percent of the financial assistance will be provided in the form of grants.
In his remarks at the signing ceremony, Deputy Prime Minister and Finance Minister Paudel highlighted the importance of the agreement, calling it a significant milestone for Nepal’s socio-economic development. Finnish Development Minister Tavio expressed confidence that the project would play a key role in advancing economic cooperation between Nepal and Finland.
