Bilateral Nepal-German Government Negotiations on Development Cooperation Successfully Concluded

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22.11.2017 - Press release

The Government of the Federal Democratic Republic of Nepal and the Government of the Federal Republic of Germany have successfully conducted government negotiations on bilateral development cooperation on 19 and 20 September 2018 in Berlin. The German side has pledged fresh funds (grants) of EUR 55,6 million. (more than NPR 7.55 billion) for the continuation of German support.

German Development cooperation is focusing on three thematic areas:

  1. Sustainable Economic Development
  2. Health and
  3. Energy Efficiency/Renewable Energy

In addition, German Development Cooperation is supporting Nepal in the field of earthquake recovery and local governance. Out of the total commitment, EUR 36,3 m. will be provided under financial cooperation via KfW Development Bank. The remaining EUR 19,3 m. will be used for Technical Assistance via GIZ.

The lion’s share of the committed funds will be allocated to the sectors of energy (EUR 24.55 m.), sustainable economic development EUR 13,0 m. and health (EUR 11,95 m.). Altogether, the German financial support to Nepal amounts to approximately EUR 1.2 bn 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 8,3  m.) will be the improvement of the Mother and Child Care in the Kathmandu Valley by extending the services of the Paropakar Maternity and Women´s Hospital in Kathmandu to surrounding areas. Another major commitment will allow the continuation of Germany’s support for energy efficiency with the Ministry of Energy, Water Resources and Irrigation as lead partner.

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 programme to contribute to Nepal’s goal to accelerate Universal Health Coverage.

Cooperation in the field of economic development aims at creating sustainable income opportunities and jobs, in particular for disadvantaged groups.

All new commitments will be implemented fully in line with Nepal’s Development Cooperation Policy.

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