Kathmandu, March 7:

Norway has agreed to provide a grant assistance of Norwegian Kroner 13 million (approximately Rs 130 million) to Nepal.

The grant assistance will be deposited with the Peace Trust Fund, which will be utilised for post-conflict management.

Finance secretary Rameshore Prasad Khanal and the visiting Norwegian minister for international development cooperation, Erik Solheim signed an agreement this effect today.

Established by the government of Nepal, the fund will provide financial and physical support for five broader and current issues of post-conflict management.

They include rehabilitation of internally displaced peoples (IDPs), providing support for constituent assembly polls, rehabilitation and strengthening of internal security bodies, cantonment management and rehabilitation of the Maoists army, and to implement programmes of the accords signed during the comprehensive peace agreement.

On the occasion, Solheim reiterated the support of the Norwegian government for the ongoing peace process. “We are encouraged by the ongoing rebuilding and rehabilitation programmes, as Nepal’s peace process is one the most promising post-conflict managements in the world,” he added.

He also added that Norway is keen in exploring Nepal’s vast hydropower potentials at the government-to-government level as well as mobilising the private investors and developers in the two countries.

“Clean energy like hydropower is the sector, where we see ample avenues for future partnership between the two countries,” Solheim added.

Appreciating Norway’s support to Nepal in the areas of education, water supply, and energy, Khanal hoped that this grant assistance would be crucial for post-conflict management.

He also informed that Norway is providing another grant assistance of Norwegian Kroner 125 million (approximately Rs 1.25 billion) to Nepal for Energy Sector Support Programme-II for which an agreement will be signed very soon. Khanal hoped that Norway would continue its support in peace building measures as well as socio-economic development of Nepal.

Finance minister Dr Ram Sharan Mahat and Tore Toreng, Norwegian ambassador to Nepal were also present on the occasion.