Nepal government and the Government of the Federal Republic of Germany have successfully conducted government negotiations on bilateral development cooperation on 22 and 23 November 2016 in Kathmandu. The German side has pledged fresh funds of EUR 36 million (more than NPR 4.2 billion) for the continuation of German support.

“German Development cooperation is focusing on three thematic areas like Sustainable Economic Development and Trade, Health and Energy Efficiency/Renewable Energy,” said a joint press release issued by Ministry of Finance and German Embassy.

In addition, German Development Cooperation is supporting Nepal in the field of earthquake recovery and local governance. Out of the total commitment, EUR 16 million will be provided under financial cooperation via KfW Development Bank. The remaining EUR 20 m. will be used for Technical Assistance via GIZ and the German National Metrology Institute PTB.

The lion’s share of the committed funds will be allocated to the sectors of energy (EUR 20.5 million) and health (EUR 5 million). Altogether, the German financial support to Nepal amount to approximately EUR 1.2 billion since 1961.

The geographical focus of the cooperation will remain on the rural regions in Nepal’s Mid and Far West, with additional support to selected districts that were severely affected by the 2015 earthquakes.

“The biggest single new project supported with this year’s commitment (EUR 16 million) will be a transmission line (Leknath – Damauli) that is key for Nepal’s grid development in cooperation with Nepal Electricity Authority (NEA). Another major commitment will allow the continuation of Germany’s support for energy efficiency with the Ministry of Energy as lead partner,” said press rlease.

In the priority area of health, German Development Cooperation continues to support the National Health Sector Strategy and aligns its contributions to the priorities and timelines of the Government of Nepal, Ministry of Health. Key areas of support (among others) are improving the availability, usage and quality of health services, particularly those concerned with maternal and new-born health, as well as the establishment of the Social health Security Program to contribute to Nepal’s goal to accelerate Universal Health Coverage.

Cooperation in the field of economic development and trade aims at creating sustainable income opportunities and jobs, in particular for disadvantaged groups. To complement the ongoing activities in this sector, this year’s commitments target on strengthening the Internal Revenue Department (IRD) and Nepal’s Quality Infrastructure.