The European Union has said it will increase its development assistance to Nepal by three times for the period of 2014 to 2020.
During a meeting with Finance Minister Dr Ram Sharan Mahat, EU's Development Commissioner Andris Piebalgs announced that the financial aid will go up to Rs 48 billion from the current Rs 16 billion, according to EU Nepal office sources.
Mahat had recently returned from Brussels where he had attended the Asia Programming Consultation seminar.
He also told Piebalgs about the government's plan of drafting the Constitution and holding local polls within an year, a statement issued by Nepal's Ministry of Finance said.
The Finance Minister also requested Piebalgs to provide assistance in the priority sectors such as rural development, energy, irrigation and rural roads.
Meanwhile, EIB has also pledged to provide a grant of Rs 16 billion for hydropower projects and transmission lines.
During a meeting with Mahat, EIB director Fransisco De Paula Coelho pledged grants of Rs 1.5 billion for Tanahu Hydropower Project, and Rs 12 billion for transmission lines of Kaligandaki and Marsyangdi corridor within this year.
Likewise, EIB will provide Rs3 billion for the upgradation of existing transmission line of the Trishuli corridor.
Piebalgs had recently announced over Euro 6.5 billion in new support for countries and organisations in Asia for the period 2014-2020.
Piebalgs said, "The EU is committed to cooperation with Asia for the long-run. The future programmes are expected to help achieve the Millennium Development Goals in the region, address climate change, promote energy efficiency, facilitate business and trade through better market access and support regional integration.
