Kathmandu: Nepal’s Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel held discussions with Finland’s Minister for Foreign Trade and Development, Ville Tavio, at the Ministry of Finance. Following the talks, the Governments of Nepal and Finland signed a framework agreement for a Public Investment Mobilization Project.

The agreement, under Finland’s Public Investment Facility Program, was signed by Dhani Ram Sharma, head of the International Economic Cooperation Coordination Division at the Ministry of Finance, and Riina-Rikka Heikka, Finland’s Ambassador to Nepal.

The project aims to strengthen Nepal’s socio-economic infrastructure and promote sustainable development through concessional financing. Under this initiative, Nepal will invest in areas such as water supply, waste management, energy and electricity, digitalization, meteorology, healthcare technology, disaster management, and rescue equipment.

The financial mobilization will be guided by the Public Sector Investment Facility framework, which aligns with the Organization for Economic Cooperation and Development (OECD) standards. As Nepal is categorized as a Least Developed Country (LDC), 50% of the financial assistance will be provided in the form of grants.

During the event, Minister Paudel highlighted the significance of the agreement, describing it as a milestone for Nepal’s socio-economic infrastructure development. Finnish Minister Tavio expressed confidence that the Public Investment Mobilization initiative would serve as a vital medium to enhance economic cooperation between Nepal and Finland.