Kathmandu,July 12: The Government of the Federal Republic of Germany has agreed to provide Nepal a grant assistance of dm 42.0 million (approximately Rs. 1,428,000), according to a press release from the Ministry of Finance.

The assistance will be used for the implementation and support of four different project activities, including the biogas support programme, the town development programme, the renewable energies development programme and upgrading of the Malekhu-Dhadingbesi road.

Out of the dm 42 million, dm 17.0 million ( approximately Rs. 578 million) will be used for the support of renewable energies and dm 14.0 million ( approximately Rs 476 million) for the town development programme phase ll.

Under this progamme, social and economic infrastructure projects and revenue generating projects will be carried out in selected municipalities.

Likewise, of the total financial contribution dm 9.0 million will be used for the biogas support programme phase ll and dm 2.0 million is for upgrading the Malekhu-Dhadingbesi road project.

Following the government to government agreement, individual project agreements have to be signed later for the implementation of the above mentioned proiects.

An agreement on the grant assistance was signed and exchanged at the Ministry of Finance today between His Majesty’s Government and the government of the Federal Republic of Germany. Secretary at the Ministry of Finance Dr Bimal Prasad Koirala and Dr Klaus Barth, ambassador of Germany to the Kingdom of Nepal signed the agreement on behalf of their respective governments.

His Majesty’s Government has expressed sincere appreciation and thanks to the Government of Germany for its continued support for and interest in the socio-ecomomic development of Nepal.