KATHMANDU: The Government of the Federal Republic of Germany has agreed to provide grant assistance of Rs 3.20 billion (Euro 29 million) as financial cooperation for the implementation of different projects.

Of the total grant assistance, Euro 27 million was allocated for 2014-15 and Euro 2 million was for 2013.

The grant assistance will be mobilised through KFW (Reconstruction Loan Corporation) of the Government of the Federal Republic of Germany.

The projects which would be implemented from this financial cooperation include Sustainable Economic Development in Rural Areas, National Health Sector Programme and Improvement of Maternal and Child Care in remote areas.

At a programme organised at the Ministry of Finance on Wednesday, Finance Secretary Suman Kumar Sharma and Matthias Meyer, Ambassador of the Federal Republic of Germany, signed the agreements.

It may be recalled that in the joint government negotiations held in December 2014 in Kathmandu the Federal Republic of Germany had agreed to provide a total assistance of Euro 48 million to Nepal consisting of Euro 27 million as financial assistance and Euro 21 million as technical assistance.

This assistance will be utilised within December 31, 2021.

During the agreement signing ceremony, German Ambassador Meyer expressed commitment to provide continuous support to Nepal in its economic development activities.

Ambassador Meyer also welcomed the draft of the new constitution that has been approved by the Constituent Assembly.

Projects to be implemented

• Sustainable Economic Development in Rural Areas

• National Health Sector Programme

• Improvement of Maternal and Child Care in remote areas