Nepal and Germany signed an agreement on €16 million euros grant assistance committed by the German Federal Government last year on energy sector cooperation on Friday at the Ministry of Finance.

The grant will comprise financial assistance for the construction of the Lekhnath-Damauli 220 kV double circuit transmission line under the project, Promotion of Energy Efficiency and Renewable Energy in Nepal, Phase II.

“This transmission line is a crucial element of strengthening Nepal’s national grid, as it will evacuate power from various hydropower plants being constructed both by the public and private sectors,” said the joint statement issued after the agreement signing.

 The projected cost of the venture is €32.5 million (NRs.3.82 billion).

 According to the statement, approximately 50% of the project’s cost will be covered by German Financial Cooperation. Nepal government has committed to cover remaining cost of the project through Nepal Electricity Authority’s funds.

Both governments have expressed their commitment to ensuring a successful and timely implementation of the project.

Outgoing German Ambassador Matthias Meyer and Finance Secretary Shanta Raj Subedi signed the agreement.