Germany has agreed to provide 10 million euros (about Rs 1.46 billion) as grant assistance to Nepal to strengthen the power distribution system, Nepal’s Ministry of Finance said in a statement on Tuesday, November 19.
“The Ministry of Finance (MoF), on behalf of Government of Nepal, and the Embassy of the Federal Republic of Germany, on behalf of the Government of the Federal Republic of Germany, have signed a grant Agreement for the implementation of the Power Distribution Strengthening Programme (PoDiSP) in Nepal,” reads the statement issued by the ministry.
Dr. Thomas Prinz, Ambassador of Germany to Nepal, and Dhani Ram Sharma, Joint Secretary, International Economic Coordination Cooperation Division, Ministry of Finance, signed and exchanged the agreement on behalf of their respective governments in Kathmandu on Tuesday.
The PoDiSP aims to strengthen Nepal's electricity distribution infrastructure and introduce climate-friendly technologies to ensure a more reliable and efficient power supply.
“The focus areas for development will be key regions in Nepal, including Bharatpur (Bagmati Province), Butwal-Bhairahawa (Lumbini Province), and Pokhara (Gandaki Province),” the statement reads. “The programme will support the Nepal Electricity Authority (NEA) in preparing a detailed feasibility study and in upgrading the existing power distribution systems with modern, climate smart technologies.”
This project will be implemented as a German Financial Cooperation (FC) through KfW, Germany's development bank, and will be integrated into the Government of Nepal's budgetary system, being reflected in the red book for its official execution.
The programme will commence in 2025, according to the ministry.
During the signing ceremony, Joint Secretary Sharma emphasised that the support would greatly enhance the reliability of the power supply across the targeted regions.
Similarly, Ambassador Dr. Prinz remarked that this agreement would deepen the longstanding and cooperative relationship between Germany and Nepal.
