Nepal, USA signed a $659 million new “development objective” agreement

Kathmandu: Today, the Government of Nepal (GON), through the Ministry of
Finance (MOF), and the United States, through the U.S. Agency for International
Development (USAID), signed a new Development Objective Agreement.
This assistance agreement, which will span five years, outlines the broad development
areas of U.S. and Nepal cooperation and collaboration. The grant, amounting to $659
million (equivalent to NRs 79.71 billion) over the five-year period, will support Nepal’s
goal of graduating to a middle-income country.
Partnering with the GON, civil society, and the private sector, U.S. assistance will advance
Nepal’s sustainable development through strengthened democratic governance, enterprisedriven 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.
Mr. Ishwori Prasad Aryal, Joint Secretary and Head of International Economic Cooperation
Coordination Division (IECCD), MOF and Ms. Sepideh Keyvanshad, USAID/Nepal
Mission Director, signed and exchanged the agreement on behalf of their respective
governments.
Delivering a short remark following the signing ceremony, Mr. Aryal, expressed, “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 socioeconomic
development. He expressed that the Assistance Agreement as a departure agreement for
both governments due to the fact that, for the first time in this enduring partnership, U.S.
assistance will be fully reflected in GON’s Red Book.

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