Germany has pledged 9.5 million euros for improving the solar home system in rural communities and supporting the peace process.
According to a press release issued by the German Embassy in Kathmandu, 8.5 million euros will go toward the promotion of solar home systems and the rest constitutes a contribution to the Nepal Peace Trust Fund.
Rameshwor Prasad Khanal, secretary at the Ministry of Finance, and Verena Grafin von Roedern, ambassador of Germany, signed an agreement to this effect amid a function on Tuesday.
"The endorsement of solar home systems would provide rural communities with improved access to electricity and greater independence from external sources," the press note quoted Ambassador von Roedern as saying.
She expressed confidence that the contribution to the Nepal Peace Trust Fund would support the peace process in Nepal providing essential resources in order to guarantee a sustained peace and the reconstruction of relevant infrastructure across the country.
The support is part of Germany's overall commitment to Nepal amounting to 38.5 million euros for the two-year period 2009/10.