Kathmandu, April 4:

Denmark has agreed to provide a grant assistance of Rs 120 million to Nepal to cover urgent election related needs and Rs 80 million for the UN Peace Fund.

According to a press release issued by the Kathmandu-based Danish embassy, an initial disbursement of Rs 120 million will be made to Nepal Peace Trust Fund (NPTF), to cover in particular urgent election related needs, and Rs 80 million will be disbursed to the UN Peace Fund to support a joint programme for de-mining initiated by UNMIN.

Dr Madhav Prasad Ghimire, joint secretary at the ministry of finance and Finn Thilsted, ambassador of Denmark, signed the agreement on behalf of their respective governments at the ministry, today.

Grants through the two funds will be allocated on the basis of concrete proposals and in accordance with the priorities for the general Danish peace support, which includes elections, social inclusion, reintegration/rehabilitation and strengthening of state institutions.

It may be recalled that the Nepal has established the NPTF, with the overall objective to support the successful implementation of the comprehensive peace agreement between the government and the Communist Party of Nepal (Maoists).

The Peace Fund provides mechanism to channelise and coordinate resources in five areas namely, management of camps and reintegration of former combatants, rehabilitation of internally displaced people, election of constituent assembly, strengthening of law and order and police administration, and support to peace process.

Meanwhile, Denmark has welcomed the formation of interim government.It says this is a very important step towards a constitutional assembly and peace.