Kathmandu, Nepal – The Government of Nepal and the Federal Republic of Germany have signed a €10 million (approximately NPR 1.46 billion) grant agreement to implement the Power Distribution Strengthening Program (PoDiSP) in Nepal.

Set to commence in 2025, the program aims to enhance Nepal’s power distribution infrastructure and introduce climate-friendly technologies, ensuring a more reliable and efficient power supply.

The primary focus areas of the development will be major Nepalese cities including Bharatpur in Bagmati Province, Butwal-Bhairahawa in Lumbini Province, and Pokhara in Gandaki Province.

The program will support the Nepal Electricity Authority (NEA) in preparing detailed feasibility studies and upgrading the existing power distribution system with modern, climate-friendly technologies.

This initiative is designed to improve energy efficiency and power reliability, ensuring sustainable power access in the targeted areas. The project will be implemented through German financial cooperation via KfW, the German development bank, and will be integrated into the Nepalese government’s budget system, reflected in the red book for official execution.

At the signing ceremony, Danirama Sharma, Joint Secretary at the Ministry of International Economic Cooperation, emphasized that this support will significantly enhance the reliability of power supply in the targeted areas. He expressed sincere gratitude to the German government for its continued support in strengthening Nepal’s energy sector.

Thomas Prinz, German Ambassador, expressed satisfaction at the opportunity to support Nepal in strengthening its power distribution system using modern and climate-friendly technologies. He also stated that this agreement will further deepen the long-standing cooperation between Germany and Nepal.

The Government of Nepal expressed sincere gratitude for the continued support and significant role of the German government in facilitating Nepal’s socio-economic development.

The signing ceremony was attended by high-level officials from the Ministry of Finance, Nepal Electricity Authority, the German Embassy in Kathmandu, and KfW Nepal.