(Press Release): 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 on the 5th of May, 2022.

The grant, amounting to $659 million (equivalent to NRs 79.71 billion) spread over a five-year period, will support Nepal’s goal of graduating to a middle-income country – which Nepal aims to achieve by 2026.

Partnering with the GON, civil society, and the private sector, U.S. 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 government of Nepal has said “the amount of assistance will be recorded in the GON Red Book and transparently implemented through both on and off treasury modalities.” As per the agreement, 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.