Nepal, ADB pledge deeper development partnership

Nepal and the Asian Development Bank (ADB) have committed to strengthening their long-standing development partnership, aiming to usher in a new phase of growth for the Himalayan nation. Prime Minister Balendra Shah met with ADB President Masato Kanda to discuss enhancing cooperation, with a particular focus on leveraging hydropower and tourism as key economic drivers, alongside advancements in digitalization and infrastructure.

During the meeting, Kanda underscored Nepal's significant economic potential and praised its "strong public mandate and young leadership." He reaffirmed the ADB's role as a "long-term partner" in supporting Nepal's economic development and prosperity. The bank is set to increase its development assistance, with support expected to reach $2.4 billion by 2029. This commitment aims to foster "results for people: more jobs, stronger businesses, and better livelihoods for communities across Nepal."

The ADB also signed two loan agreements totaling $165 million during Kanda's visit. One $115 million project will improve water and sanitation services for over 850,000 people, while a $50 million loan will modernize cross-border trade systems through digitalization, helping businesses reduce costs and enhance efficiency. Kanda also visited ADB-financed projects, including substations to bolster Kathmandu's electricity supply and a school rebuilt after the 2015 earthquake, now equipped with modern facilities to enhance human capital and disaster risk management.

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Nepal is at a defining moment, with an opportunity to build a more dynamic and resilient economy. ADB is stepping up as Nepal’s largest multilateral development partner, and our support is expected to reach $2.4 billion by 2029. Our focus is on results for people: more jobs, stronger businesses, and better livelihoods for communities across Nepal.