At a time when Nepal is making efforts to push its development agenda, Germany has pledged over four billion rupees in financial support

Dec. 4, 2016, 5:45 p.m. Published in Magazine Issue: Vol 10. No. 8,December. 02,, 2016 Mangsir 17,2073)

The Federal Republic of Germany has been providing support to Nepal in various sectors of development. 

Germany has offered to work side by side with Nepal on sectors including energy, heritage restoration, agriculture, technical training, health, earthquake relief, rural development, rehabilitation or reconstruction.

Even in the very difficult period of violent insurgency, with several attacks on its project sites, Germany backed the construction of 75 MW Middle Marsyangdi project until its completion. Since it started its operation seven years ago, the Middle Marsyangdi has now been the backbone of Nepal’s energy sector, helping the country end the power crisis.

Along with Middle Marsyangdi and 72 MW Marsyangdi project, Germany’s support to energy project has helped to transform the Nepalese society. In its continuous commitment towards Nepal's overall development, Bilateral Nepal-German Government Negotiations on Development Cooperation successfully concluded just in the recent week.

Along with offering support to renewable energy, Germany has also agreed to support the construction of the transmission line project in the western region, where it will help to evacuate the energy to other parts of Nepal.

“The biggest single new project supported with this year’s commitment (EUR 16 million) will be a transmission line (Leknath–Damauli) that is the key for Nepal’s grid development in cooperation with Nepal Electricity Authority (NEA). Another major commitment will allow the continuation of Germany’s support for energy efficiency with the Ministry of Energy as lead partner,” said a press release.


“Nepal government and the Government of the Federal Republic of Germany have successfully conducted government negotiations on bilateral development cooperation on 22 and 23 November 2016 in Kathmandu. The German side has pledged fresh funds of EUR 36 million (more than NPR 4.2 billion) for the continuation of German support,” said the joint press release issued by Ministry of Finance and German Embassy.

“German Development cooperation is focusing on three thematic areas like Sustainable Economic Development and Trade, Health and 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 16 million will be provided under financial cooperation via KfW Development Bank. The remaining EUR 20 m. will be used for Technical Assistance via GIZ and the German National Metrology Institute PTB.

The lion’s share of the committed funds will be allocated to the sectors of energy (EUR 20.5 million) and health (EUR 5 million). Altogether, the German financial support to Nepal amount to approximately EUR 1.2 billion 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.

“Government of Nepal is grateful to the support offered by Government of Federal Republic of Germany. The money provided by Germany will help to eradicate poverty and improve Nepal’s overall situation,” said Baikuntha Aryal, joint secretary head of International Economic Cooperation Coordination Division at MoF.

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

Cooperation in the field of economic development and trade aims at creating sustainable income opportunities and jobs, in particular for disadvantaged groups. To complement the ongoing activities in this sector, this year’s commitments target on strengthening the Internal Revenue Department (IRD) and Nepal’s Quality Infrastructure.

Offering the generous support to Nepal, the German government has once again shown that it is committed to the overall development of Nepal.

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