Kathmandu, December 19:

The German government has assured of providing Rs 3.7 billion as aid to Nepal in the coming two years. During the Negotiation on Development Cooperation between Nepal and the government of the Federal Republic of Germany in Kathmandu on December 15-16, both countries also agreed to continue their longstanding economic cooperation.

The German government will provide both financial and technical assistance to Nepal for various development programmes. “Altogether, the German government has committed about Rs 3.7 billion for the coming two years,” said a press release.

Rameshwor Prasad Khanal, secretary at the Ministry of Finance, highlighted the recent political developments of Nepal including the need to take the peace process to its logical conclusion.

On the macro-economic situation of the country, Khanal said, “Nepal’s economic performance has improved since the last fiscal year as GDP grew by 5.6 per cent due to progress made in the peace and security situation as well as improvement in agriculture.”

Khanal also lauded the German government for its continued cooperation in the socio-economic development of Nepal and requested it for enhanced assistance, including facilitation for private sector investment in the implementation of infrastructure projects in line with the Public Private Partnership (PPP) approach adopted by the government.

Erich Sather, Secretary of State, Federal Ministry of Economic Cooperation and Development, expressing his appreciation of a democratic and peaceful Nepal said, “The year 2008 is very special as the two countries are celebrating the 50th anniversary of diplomatic relations.” German ambassador to Nepal, Verena Grafin Von Roedern expressed satisfaction at the progress made in the peace process and assured that Germany would continue to be a constructive partner of Nepal.

Meanwhile, during another event for participants of the Korea-Nepal Technical Cooperative Programme, Korean ambassador to Nepal, Hong Sungmog, expressed hope that the KOICA Alumni would be instrumental in pulling Nepal out of poverty and enhancing friendly and cooperative relations between Korea and Nepal.

As part of its development cooperation programme for Nepal, KOICA has invited

70 Nepali government officials to Korea each year for training programmes and masters-level courses.