KATHMANDU: The Japan International Cooperation Agency (JICA) has agreed to provide a grant assistance of around Rs 1.013 billion (Japanese Yen 1.104 billion) to the government.

A grant aid of approximately Rs 692 million (Japanese Yen 754 million) pledged by JICA is meant to be used for the Project for Improvement of Medical Equipment (PIME) at the Tribhuvan University Teaching Hospital (TUTH) while another portion of the aid of around Rs 321 million (Yen 350 million) is under the grant assistance scheme in Japan's Fiscal Year 2016.

Secretary of the Ministry of Finance Shanta Raj Subedi and Japanese ambassador to Nepal Masashi Ogawa signed the exchange of notes amidst a programme held here today on behalf of the Government of Nepal and the Japanese government respectively.

Likewise, Joint-Secretary of the International Economic Cooperation Coordination Division under the Ministry of Finance of Nepal, Baikuntha Aryal, and senior representative of JICA Nepal office, Hiroyasu Tonokawa, also signed the grant agreement.

The first portion of the grant would be used for the PIME that aims to improve the quality and quantity of medical services and education to be provided by the TUTH through a procurement of medical equipment.

The Ministry of Education would be the executing agency while the TUTH would be responsible to implement the project.

Likewise, the second portion of the grant shall be used by the Government of Nepal for the purchase of products or services necessary for the implementation of the food security programme launched by the government.

The grant would also be used for the purchase of rice and its transportation to Nepal.

The Ministry of Supplies would be the executing agency and the Nepal Food Corporation would be responsible to implement the project.

Meanwhile, the government has expressed its sincere appreciation to the Japanese government for the aid and hope for further continued support in the socio-economic development of Nepal.