The government of Nepal and the government of Finland have made a framework agreement on public investment mobilisation project.

The agreement for the project to be financed under Finland's Public Investment Facility Scheme was signed by Dhani Ram Sharma, Head of the International Economic Cooperation Coordination Division of the Ministry of Finance, and Riina-Riikka Heikka, Ambassador of Finland to Nepal.

The agreement was signed during the meeting with Foreign Trade and Development Minister of Finland Ville Tavio and Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel at the Ministry of Finance on Thursday.

The agreement aims to mobilise project-based concessional finance to strengthen socio-economic infrastructure in Nepal and promote sustainable development, according to a press statement issued by the Ministry of Finance.

Through the grant-funded projects, Nepal can invest in various socio-economic infrastructure, including drinking water, waste management, energy and electricity, digitalization, meteorology, healthcare technology, disaster management and rescue supplies.

The financial mobilisation process will be guided by the Public Sector Investment Facility Guidelines, which are based on the Organisation for Economic Cooperation and Development (OECD) framework.

As Nepal is a Least Developed Country (LDC), 50 per cent of the financial assistance will be provided in the form of grants.

Speaking at the ceremony, Deputy Prime Minister and Finance Minister Paudel said that this agreement will be a significant achievement for the development of Nepal's socio-economic infrastructure.

Finnish Development Minister Tavio expressed his belief that public investment mobilisation will be an important means for the development of economic cooperation between Nepal and Finland.