The Government of Germany has pledged a €41 million grant to Nepal to support multiple development projects in energy, sustainable economic growth, and health infrastructure.
German Ambassador to Nepal Udo Volz and Dhani Ram Sharma, Joint Secretary and Head of the Foreign Aid Coordination Division at the Ministry of Finance, signed the technical and financial cooperation agreement on Wednesday. The accord builds on commitments made during the Nepal–Germany government-to-government negotiations held in Berlin on September 4–5, 2024, in accordance with international law.
Among the supported projects, the Power Distribution Strengthening Program (PoDiSP) aims to enhance electricity distribution and consumption in and around Pokhara, Butwal, and Bharatpur. Germany has allocated an additional €20 million for this initiative, supplementing an earlier €10 million grant.
The agreement also provides €12 million in additional funding for the GRAPE (Green Resilient Agricultural-centered Private Sector Economic Development) project, which promotes climate-resilient agriculture and private sector growth.
Another key initiative, the Strengthening of Quality Infrastructure for the Health System, has been allocated €1.5 million. Wherever possible, Germany implements such projects under the Team Europe approach, collaborating closely with European partners. In Nepal’s case, this includes joint efforts with the European Union in major programs such as GRAPE and PoDiSP.
The projects will be implemented through German agencies — the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Kreditanstalt für Wiederaufbau (KfW), and the Physikalisch-Technische Bundesanstalt (PTB).
German Ambassador Udo Volz praised the enduring partnership between the two countries, stating:
“With these new commitments, we further deepen our cooperation with the country and the people of Nepal in the areas of Energy, Sustainable Economic Development, and Health.”
Joint Secretary Dhani Ram Sharma highlighted that the agreements underscore the strength of Nepali-German relations and the shared commitment to inclusive and sustainable development.
“We are deeply grateful for Germany’s continued support in key sectors that matter most to the people of Nepal,” he said.
