Nepal, Finland ink framework agreement on public investment mobilisation

KATHMANDU, NOVEMBER 28: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel held discussions with Finland's Minister for Foreign Trade and Development, Ville Tavio.

During a meeting at the Ministry of Finance, the governments of Nepal and Finland signed a framework agreement on public investment mobilisation.

The very agreement was signed by Dhaniram Sharma, Head of the International Economic Cooperation Coordination Division at Nepal's Ministry of Finance, and Rina Rikka Heikka, Finland's Ambassador to Nepal.

The agreement aims to facilitate concessional financing for those projects that strengthen Nepal’s social and economic infrastructure while promoting sustainable development. Through grant-supported initiatives, Nepal will have the opportunity to invest in key sectors such as water supply, waste management, energy and electricity, digitalization, meteorology, healthcare technology, disaster management, and rescue operations.

The financing process will be guided by the Public Sector Investment Facility framework, aligned with the standards of the Organization for Economic Co-operation and Development (OECD).

As Nepal is categorized as a Least Developed Country (LDC), 50% of the financial support will be provided in the form of grants.

Speaking at the event, Deputy Prime Minister and Finance Minister Paudel described the agreement as a significant milestone for the development of Nepal’s socio-economic infrastructure. Likewise, Finland’s Minister Tavio expressed confidence that the Public Investment Mobilization initiative would serve as a vital platform for enhancing economic cooperation between Nepal and Finland.