KATHMANDU, Nov. 20 -- China agreed on Thursday to provide 10 million yuan (1.63 million U.S. dollars) annually from 2014 to 2018 to help Nepal develop its northern districts bordering with China's Tibet Autonomous Region.

According to a Memorandum of Understanding signed by Purna Chandr Bhattarai, joint secretary of Ministry of Federal Affairs and Local Development and Chinese Ambassador Wu Chuntai, the donation will be spent on small-scale projects in the areas of health, education and road to improve the livelihood in the northern mountainous region.

The 15 districts benefiting from the Chinese aid include Darchula, Bajhang, Humla, Mugu, Dolpa, Mustang, Manang, Gorkha, Dhading, Rasuwa, Sindhuplchok, Dolakha, Solukhumbu, Sankhwasabha and Taplejung from the west to the east.

Secretary of Federal Affairs and Local Development Somlal Subedi expressed Nepal's appreciation to China's assistance, hoping that the two neighbors could work together to develop the Himalayas.

Ambassador Wu said the two friendly countries should join hands to protect environment and bring benefit to local people.