Nepal and Germany have signed a technical and financial cooperation agreement worth 41 million euros to advance projects in energy, sustainable economic development and health. The agreement was signed by Ambassador Udo Volz of Germany and Dhani Ram Sharma, head of the Foreign Aid Coordination Division at the Ministry of Finance.

Issuing a press release after the signing in ceremony on Wednesday, Sharma said that the deal builds on commitments made during government-to-government negotiations in Berlin in September 2024.

It includes an additional €20 million for the Power Distribution Strengthening Programme (PoDiSP) in Pokhara, Butwal and Bharatpur, €12 million for the GRAPE (Green Resilient Agricultural-centred Private Sector Economic Development) project, and €1.5 million to strengthen quality infrastructure in the health system.

Germany will implement the projects through its agencies—GIZ, KfW and PTB—under the Team Europe approach in partnership with the European Union.

During the ceremony, joint secretary Sharma expressed gratitude for Germany’s continued support, saying the agreements reflect “the depth and stability of Nepal-Germany relations and demonstrate a shared commitment to inclusive and sustainable development.” He also extended heartfelt thanks to the German government and people for their long-standing cooperation and contribution to Nepal’s socio-economic progress.

Ambassador Volz said the new commitments “further deepen our cooperation with Nepal and its people in the areas of energy, sustainable economic development and health.”

The signing ceremony took place at the ministry of finance in Singha Durbar, and was attended by representatives from German agencies and relevant Nepali ministries.