KATHMANDU: The government of the Federal Republic of Germany has agreed to provide a grant assistance of Rs 3.20 billion (Euro 29 million) as financial cooperation for the implementation of different projects in Nepal.

Of this, Euro 27 million will be allocated for 2014-15 and Euro 2 million will be for 2013. The assistance would be mobilised through KFW (Reconstruction Loan Corporation) of the government of the Federal Republic of Germany.

The projects which would be implemented from this financial cooperation include sustainable economic development in rural areas, national health sector program and improvement of maternal and child care in remote areas.

At a programme organised at the Finance Ministry today, Finance Secretary Suman Kumar Sharma and Matthias Meyer, Ambassador, Embassy of the Federal Republic of Germany, signed the agreements.

The joint government negotiations held in December 2014 in Kathmandu, the Federal Republic of Germany had agreed to provide a total assistance of Euro 48 million to Nepal consisting of Euro 27 million as financial assistance and Euro 21 million as technical assistance. This assistance would be utilised within 31 December 2021.

On the occasion, Ambassador Meyer expressed his commitment to provide continuous support to Nepal in its economic development activities, and also expressed determination for providing maximum support in reconstruction task of Nepal after April 25 earthquake.

He also welcomed the draft of the new constitution approved by the Constituent Assembly (CA).

Similarly, Finance Secretary Sharma on the behalf of the government of Nepal expressed sincere appreciation to the government of the Federal Republic of Germany for this assistance and for its continued support in the socio-economic development of Nepal.