According to news agencies, foreign secretary Gyan Chandra Acharya and Deputy Secretary General of the Norwegian Foreign Ministry Atle Leikvoll signed the agreement, replacing a 1996 agreement on bilateral cooperation.
The agreement was signed in presence of Prime Minister Pushpa Kamal Dahal, who is leading a 19-member Nepalese delegation in the tour of Norway and Finland, and Norwegian Minister of the Environment and International Development, Erik Solheim.
Besides increasing support to the peace process, electricity and energy, Norway has also agreed to up its assistance in rural education and good governance sectors.
On Monday, PM Dahal held talks with his Norwegian counterpart Jens Stoltenberg and called on King Herald V.
PM Dahal and Minister Solheim addressed a press conference following the signing ceremony. The Reuters news agency quoted PM Dahal as telling the press conference that the government has aimed to complete the peace process in four to five months, roughly in time for when the mandate of the UN Mission in Nepal (UNMIN) completes in late July. He also said the issue of federalism is going to be "one of the vital issues" in the Constituent Assembly.
"I think now we are going to conclude this peace process within a couple of months. We have already decided a timetable to lead this process to conclusion in four to five months," PM Dahal said. "We want to see this process to a logical conclusion in such a way that it can be a model of peace, particularly for south Asia."
Solheim said Nepal´s "home grown" peace process is moving forward in a positive direction, adding that Norway will continue to support Nepal´s peace process and development endeavors.
Last year, Norway had provided Rs 3 billion financial support for the development of Nepal.
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