As Nepal is desperate needs for infrastructure development,  The Government of the People's Republic of China has agreed to provide a grant assistance of RMB 800 million (approximately Rs 12.83 billion) under the economic and technical cooperation.

The northern neighbor has agreed to provide the grant assistance for marking the sixtieth years of cordial and friendly diplomatic relationship between Nepal and China.

The main objective of the assistance is to support Nepal's economic development by implementing the mutually agreed development projects covering various sectors including infrastructure development. This cooperation will be utilized in the development programs as agreed by both governments.

It will be implemented in continuous basis from the fiscal year 2015/016. The Sectoral ministries of the government of Nepal will be the implementing agency for the projects under this grant assistance.

The agreement was signed in Kathmandu by Finance Secretary Suman Prasad Sharma and Wu Chuntai, Ambassador of the People's Republic of China to Nepal, on behalf of their governments in the presence of Minister for Finance Dr Ram Sharan Mahat.

Speaking at the ceremony, Finance Secretary Sharma said the two countries enjoy cordial and friendly diplomatic relationship for long and added that the grant was the highest grant assistance made by China so far. He expressed sincere appreciation to the People's Republic of China for this grant assistance and for its continuous support to the socio-economic development of Nepal.

On the occasion, Chinese Ambassador Wu said China wished to see Nepal moving towards the political stability and lasting economic development and also expressed the confidence that the socio-economic, cultural, and diplomatic ties between the two countries would be strengthened in the days ahead.