The Ministry of Finance and the South Korean embassy on Tuesday signed a memorandum of understanding on capacity building of medical services.

The MoU of the project “Capacity Building Of Medical Service To Achieve Universal Health Coverage For The Poor In Vulnerable Areas In Bhaktapur, Nepal” was signed by Arjun Prasad Pokharel, finance secretary, and Korean Ambassador to Nepal Park Tae-Young.

Through Korea International Cooperation Agency (KOICA), the Korean government will spend $9.5 million on the project for five years.

The project aims to enhance the capacity of medical infrastructure and professionals for quality hospital management, infection control and improved public health insurance coverage to attain the goal of universal health coverage in Bhaktapur, KOICA said in a statement.

This project will be implemented by KOICA, Madhyapur Thimi Municipality, KOICA and Nepal Korea Friendship Municipality Hospital (NKFMH) in close collaboration and coordination with the Ministry of Federal Affairs and General Administration.

As per the understanding, KOICA shall construct a 150-bed hospital in the adjoining land of the hospital, provide necessary medical equipment and develop the capacity of the medical and administrative staff of the hospital.

The old and new hospital buildings shall be interconnected for effective service delivery, reads the statement.