KATHMANDU — China and Nepal signed on March 17 an agreement for providing a grant assistance of RMB 800 million ($128 million) to the Nepalese government under the Economic and Technical Cooperation between the two countries.

Chinese ambassador to Nepal Wu Chuntai and Finance Secretary Suman Prasad Sharma signed the agreement here in the presence of Finance Minister Dr Ramsharan Mahat.

“The main objective of this grant assistance is to support Nepal’s economic development by implementing the mutually agreed development projects covering various sectors including infrastructure development. This cooperation will be utilized in the development programs as agreed by both countries,” read a press statement issued by Nepal’s Finance Ministry.

According to the statement, the project will be implemented in continuous basis from Fiscal year 2015/2016.

Chinese ambassador Wu said that China provided the grant assistance to Nepal as it attaches a great importance to its relationship with Nepal. ”I sincerely hope that this assistance will further enhance bilateral ties between the two countries.”

Referring that Nepal became a founding member of the Asian Infrastructure and Investment Bank and also it became a part of Silko Road Economic Belt last year, the Chinese ambassador expressed hope that these two developments have boosted mutual cooperation between China and Nepal.

Finance Secretary Sharma said on the occasion that “This is the largest amount of support extended by the Chinese government to Nepal and this reflects the closest, friendly and cordial relations between the two countries,” Sharma said.

During an official visit to Nepal on December 25-27 last year, Foreign Minister Wang Yi had announced to increase the grant assistance to RMB 800 million from the current RMB 150 million.