KATHMANDU: Joint Secretary Shree Krishna Nepal of the Ministry of Finance and German Ambassador Roland Schaefer signed financial and technical cooperation agreements on behalf of their respective governments, worth Euro 10 million (equivalent about NPR 1,4 billion) of grant assistance.

This new initiative will support the private and public sector to expand grid-connected solar farms, solar irrigation and industrial rooftop solar in semi-urban areas for an inclusive economic growth, a statement issued by the German Embassy said.

In remote areas, the initiative aims at promoting isolated solar mini-grids providing reliable and clean electricity to the rural population, it added.

According to the statement, the technical cooperation component will improve the capacity of the public and private sectors to plan and implement such projects, while the financial component will provide investment support.

“With today’s signing, Germany shows solidarity with Nepal in these economically challenging times, and also supports the worldwide efforts in tackling climate change,” Ambassador Schaefer said.

He added that energy is a key-factor enabling economies to grow, but the sector is also one of the biggest emitters of greenhouse gas worldwide.

“All countries need to come together to rise to this global challenge! Germany joins Nepal’s Development Partners in their joint commitment to support the Government of Nepal’s Relief, Recovery and Resilience Plan, to enable a green recovery and inclusive development, especially after the Covid-19 shock,” he said.

The agreements are part of the German Climate Technology Initiative (DKTI), an initiative that aims to disseminate climate and environment friendly technologies that can contribute to substantial reductions in greenhouse gas emissions in developing countries.

With these new projects, the total volume of bilateral technical and financial cooperation from Germany amounts to around Euro 1 billion since cooperation began in 1959, the statement said.

Both governments expressed their commitment to ensuring a successful and timely implementation of these key projects, it added.