Nepal and the French Republic entered into diplomatic relations on 20 April 1949. Bilateral economic cooperation programme commenced in February 1981 when the two countries signed the First Protocol amounting to French Franc 50 million loan which was converted into debt in 1989. Food aid and the counterpart funds that it generated have been the main form of aid since 1991. Main areas of cooperation are national seismologic network, petroleum exploration, restructuring of Water Supply Corporation, the Kavre Integrated Project and Gulmi and Arghakhanchi Rural Development Project, rehabilitation of airports, ‘food for work’, and others.