US provides Rs 79.71 billion grant to support Nepal’s graduation to middle-income country

Termed as a new Development Objective Agreement, this assistance agreement will span five years. It outlines the broad development areas of US and Nepal cooperation and collaboration.

NL Today

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Kathmandu: The United States of America is to provide USD 659 million (equivalent to Rs 79.71 billion) to Nepal for supporting its goal of graduating to a middle-income country.

Ishwori Prasad Aryal, Joint Secretary and Head of International Economic Cooperation Coordination Division (IECCD), Ministry of Finance and Sepideh Keyvanshad, USAID Nepal Mission Director, signed and exchanged the agreement on behalf of their respective governments at a program organized at the Ministry on Thursday.

Termed as a new Development Objective Agreement, this assistance agreement will span five years. It outlines the broad development areas of US and Nepal cooperation and collaboration.

Partnering with the Government of Nepal, civil society, and the private sector, US assistance will advance Nepal’s sustainable development through strengthened democratic governance, enterprise-driven economic growth and increased resilience for communities most at-risk to natural disasters and climate change.

The amount of assistance will be recorded in the GoN Red Book and transparently implemented through both on and off treasury modalities. USAID will develop projects under this assistance agreement in collaboration with line ministries and implemented in accordance with GoN rules and regulations.
Delivering a short remark following the signing ceremony, Aryal said, “In 1951, after signing the Point Four program, the United States became the first bilateral donor to Nepal. This began a 70-plus-year relationship of trust, mutual respect, and commitment to the people of Nepal.”

He further added that Nepal has greatly benefited from the financial and technical assistance extended by the United States to help drive Nepal’s socio-economic development.

He expressed that the Assistance Agreement is a departure agreement for both governments due to the fact that, for the first time in this enduring partnership, US assistance will be fully reflected in GoN’s Red Book.

Similarly, Keyvanshad noted, “Today we add a new chapter to our long-standing partnership with the Government of Nepal and the Nepali people. We look forward to continuing the US government’s long-term commitment to support activities that strengthen Nepal’s democracy, governance, and economic growth across the country.”

This year, the United States and Nepal are celebrating 75 years of the bilateral relations.