Kathmandu: The German government has committed €10 million (approximately NPR 1.46 billion) in grant assistance to Nepal for the implementation of the Power Distribution Strengthening Programme (PoDiSP). The agreement was signed on Sunday between Nepal’s Ministry of Finance (MoF) and the German Embassy in Kathmandu.

The agreement was formalized by Dr. Thomas Prinz, German Ambassador to Nepal, and Mr. Dhani Ram Sharma, Joint Secretary of the International Economic Coordination Cooperation Division at the MoF. The grant will help Nepal improve its electricity distribution infrastructure and adopt modern, climate-friendly technologies.

Focus on Key Regions and Sustainability
The PoDiSP will target key areas in Nepal, including Bharatpur (Bagmati Province), Butwal and Bhairahawa (Lumbini Province), and Pokhara (Gandaki Province). The programme aims to enhance the reliability of power supply and energy efficiency in these regions, aligning with Nepal’s sustainable energy objectives.

As part of the initiative, Nepal Electricity Authority (NEA) will carry out detailed feasibility studies and upgrade existing distribution systems with climate-smart technologies. The programme, scheduled to commence in 2025, will be implemented as a German Financial Cooperation (FC) project through KfW, Germany’s development bank.

Strengthening Bilateral Ties
During the signing ceremony, Joint Secretary Sharma expressed gratitude for Germany's longstanding support in Nepal’s energy sector, emphasizing the transformative impact of the programme on power supply reliability.

German Ambassador Dr. Prinz highlighted the importance of modernizing Nepal’s electricity distribution system and reaffirmed Germany’s commitment to fostering Nepal's socio-economic development. He noted that the partnership reflects the strong bilateral relations between the two nations.

Integration and Future Goals
The grant project will be incorporated into Nepal’s national budgetary system and reflected in the government's official red book for streamlined execution. Senior officials from the MoF, NEA, the German Embassy, and KfW Nepal attended the signing ceremony, underscoring the collaborative nature of the initiative.

Nepal has acknowledged Germany’s critical role in supporting its energy sector and broader developmental goals, with this project marking another milestone in their partnership.