Kathmandu, April 24: The European Union (EU) has agreed to provide grant assistance of Euro 105 million to the Government of Nepal for the post-earthquake rehabilitation and reconstruction.
This assistance comprises a budget support in the form of a state building contract of Euro 100 million (equivalent to approximately Rs 11.95 billion) and Technical Assistance of Euro 5 million (equivalent to approximately Rs 11.95 billion). This assistance was pledged during the International Conference on Nepal's Reconstruction (ICNR) in June 2015, according to the Ministry of Finance.
The objective of the state building contract is to improve financial and implementation capacity of the government for recovery and reconstruction. This support will provide fiscal space for the government to accelerate development spending for inclusive recovery and reconstruction that enhances disaster preparedness and resilience based on Building Back Better principles. Technical assistance associated with state building contract will strengthen Public Financial Management ( PFM), accountability and transparency. The total execution period of this financing agreement is 84 months.
Secretary at the Ministry of Finance Lok Darshan Regmi and Ms Rensje Teerink, Ambassador of EU Delegation in Nepal signed the agreement on behalf of respective authorities.