German grant aid for Nepal

KATHMANDU: The government of the Federal Republic of Germany has agreed to provide a grant assistance of Euro7.50 million (equivalent to Rs 789.9 million) to Nepal for Town Development Project, Phase III.

According to a Finance Ministry, the grant assistance will be used in urban economic and social infrastructure projects and

renovation of municipal buildings damaged during the conflict period. Earlier, with grant assistance from Germany, two phases of Town Development Fund Project have been launched.

Like the other two grant amounts, this one also will be administered by the Town Development Fund (TDF) — an autonomous financial institution established under the Ministry of Physical Planning and Works according to its Loan and Grant Policy 2009.

By the end of 2012, TDF shall disburse the total fund with 80 per cent for loan financing and 20 per cent for grant financing to municipalities, small towns, users committee and the private sectors, according to a ministry statement.

An agreement to this effect was signed by and exchanged between Rameshwore Prasad Khanal,

secretary at the Ministry of Finance and Verena Grafin Von Roedern, Federal Republic of Germany’s ambassador to Nepal.