Kathmandu, June 8:

The government of Denmark is providing Rs 2.3 billion in aid to Nepal.

Finance secretary Vidyadhar Mallik and Danish ambassador to Nepal Finn Thilsted singed an agreement in this regard today, a press release issued by the Danish embassy here said.

The agreement followed Annual Technical Consultations between both the governments in connection with the bilateral developmet cooperation.

“The total Danish bilateral development assistance to Nepal amounts to Rs 2.3 billion in 2007 and is expected to be at a comparable level in 2008 and 2009,” the press release said.

The Danish aid would be used in the education and energy sectors and for human rights, democracy and good governance.

The Danish government also underlined its willingness to support the Nepal Peace Trust Fund established by the government.

Denmark expressed concern that Danish and other donors’ contributions to the peace fund are still not being utilised for the agreed activities, including preparations for the Constituent Assembly elections, the statement added. During the consultations, Denmark pointed out

the need for rapid improvement in a number of areas, including the Kailali and Kanchanpur Rural Electrification Project and the Waste-Water Treatment Plant in Hetauda, the statement said.