The Ministry of Finance (MoF) of Nepal and the Embassy of the Federal Republic of Germany have signed a significant grant agreement for the Power Distribution Strengthening Programme (PoDiSP) aimed at improving Nepal’s electricity distribution infrastructure. The agreement, which was finalized on behalf of the Governments of Nepal and Germany, involves a grant of 10 million Euros (approximately NPR 1.46 billion) from the German government to support this initiative.
The signing ceremony took place today at the Ministry of Finance in Kathmandu, with Dr. Thomas Prinz, the German Ambassador to Nepal, and Mr. Dhani Ram Sharma, the Joint Secretary of the Ministry of Finance, representing their respective governments. This partnership underscores the ongoing collaboration between Nepal and Germany in strengthening Nepal’s energy infrastructure, with a particular focus on introducing climate-friendly technologies to ensure a more reliable and efficient power supply.
The programme will focus on key regions in Nepal, including Bharatpur (Bagmati Province), Butwal Bhairahawa (Lumbini Province), and Pokhara (Gandaki Province). The project will assist the Nepal Electricity Authority (NEA) in conducting a detailed feasibility study and modernizing the power distribution systems in these regions with climate-smart technologies.
This development initiative aims to improve energy efficiency and enhance the reliability of electricity, ensuring sustainable access for the target areas. The project will be implemented under Germany’s financial cooperation (FC) through KfW, Germany’s development bank, and will be integrated into Nepal’s national budget system. The programme is expected to start in 2025.
During the ceremony, Joint Secretary Sharma expressed his appreciation for Germany’s support, noting that the project will significantly enhance the reliability of power supply in the targeted regions. Ambassador Dr. Prinz reiterated Germany’s commitment to supporting Nepal’s energy sector, emphasizing the importance of modern and climate-friendly technologies in achieving energy efficiency. He also noted that the agreement will further strengthen the long-standing cooperative relationship between the two countries.
The Nepal government expressed sincere gratitude to the German government for its continued support, highlighting Germany’s role in fostering Nepal’s socio-economic development.
The signing ceremony was attended by senior officials from the Ministry of Finance, the Nepal Electricity Authority, the German Embassy, and KfW Nepal.
