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Nepal and Germany agree on €37.6 million development cooperation for 2026–27

The talks, held on June 16–17, were led by Dr. Dhani Ram Sharma, Chief of the International Economic Relations Division at Nepal’s Ministry of Finance, and Barbara Schäfer, Head of Division for South Asia at Germany’s Federal Ministry for Economic Cooperation and Development (BMZ).
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By REPUBLICA

KATHMANDU, June 17: Nepal and Germany have concluded bilateral development cooperation negotiations in Kathmandu, reaffirming their long-standing partnership and agreeing on new financial and technical commitments for the next two years.



The talks, held on June 16–17, were led by Dr. Dhani Ram Sharma, Chief of the International Economic Relations Division at Nepal’s Ministry of Finance, and Barbara Schäfer, Head of Division for South Asia at Germany’s Federal Ministry for Economic Cooperation and Development (BMZ).


According to a joint statement, Germany has committed up to €37.6 million in technical and financial cooperation for the period 2026–2027.


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The funds will support projects in renewable energy and energy efficiency, power distribution, green and climate-resilient agriculture, revenue sector reform, quality infrastructure, gender equality, sustainable economic development, and access to finance. The package includes both new initiatives and the continuation of ongoing programmes implemented through institutions such as KfW Development Bank, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and the German National Metrology Institute (PTB).


German officials reiterated that development cooperation with Nepal will remain long-term and aligned with the Sustainable Development Goals (SDGs). “Germany remains a trusted partner to Nepal and globally,” Schäfer said during the meeting, according to the statement.


Germany also highlighted its continued support to Nepal through multilateral mechanisms, including United Nations agencies and global health initiatives such as the Global Fund for AIDS, Tuberculosis and Malaria. Cooperation with the European Union was also discussed.


German Ambassador Udo Volz said sustainable development depends on human rights, rule of law, and a strong civil society.


Both sides expressed satisfaction with the outcome of the negotiations and agreed to hold the next round of government-to-government talks in Germany in 2028.







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