Kathmandu, Feb. 18:Following three day’s bilateral negotiations on development co-operation, Nepal and Germany today signed an agreement in which the European nation committed a total of DM 59 million (over 2 billion rupees) for 2000/2001 period.

Of the total funds, DM 33 million falls under financial co-operation while DM 26 million under technical co-operation.

Finance Secretary Ram Binod Bhattarai and Dr. Karl Kirchoff signed the minutes on behalf of the respective governments.

Of the funds committed, 70 per cent are is aside for projects and programmes aimed at poverty alleviation, the top priority area of Nepalese-German development co-operation.

The financial co-operation consists of meeting the funding gap for upgrading Malekhu-Dhading Besi road, developing small and medium size hydropower projects and assisting in urban development. Technical co-operation mainly constitutes support in the areas of urban development, rural development and agriculture, and strengthening of economic sector.

Health and family planning and the consolidation of the private sector have been identified as other areas of co-operation.

Besides its official bilateral assistance, Germany also supports Nepal through its contributions to non-governmental organisations and multilateral institutions.

Dr. Kirchoff said that Germany would continue assisting Nepal in her efforts to alleviate poverty.

Next annual bilateral consultation would be held at the end of 2000 or early 2001, Finance Ministry said.