Nepal and ADB sign $165 million in financing agreements

Nepal and the Asian Development Bank (ADB) have formalized two project agreements totaling $165 million, aimed at enhancing water supply and improving logistics and trade facilitation. The agreements were signed during the first visit of ADB President Masato Kanda to Nepal since he assumed office.

The first agreement, a concessional loan of $115 million, will fund the Integrated Water Supply and Sewerage Management Project. This initiative seeks to improve climate-resilient drinking water, sewerage, and urban sanitation services across 12 municipalities. The second loan, valued at $50 million, is designated for the South Asia Subregional Economic Cooperation and Logistics Reforms Programme, focusing on customs modernization and trade facilitation.

“

As Nepal’s largest development partner, with an active portfolio of $3.9 billion, we will support Nepal in turning that resilience into sustained progress, creating more opportunity and building the foundations for long-term growth.

During his visit, Kanda emphasized the ADB's commitment to Nepal's development, noting the country's resilience and the bank's active portfolio of $3.9 billion. He expressed support for transforming this resilience into sustained progress and long-term growth. Kanda also toured ADB-supported educational and energy facilities, including a school where an AI literacy module was launched and electricity substations that will bolster Nepal's power system and facilitate cross-border trade.

Finance Minister Swarnim Wagle thanked the ADB for its ongoing support, while Kanda reaffirmed the bank's dedication to its six-decade partnership with Nepal. The ADB president is scheduled to meet with Prime Minister Balendra Shah before concluding his visit.

“

Together with Minister of Energy, Water Resources and Irrigation Biraj Bhakta Shrestha and Norway’s Ambassador Dagny Mjøs, we virtually inaugurated the Markichowk and Mulpani substations, which will help strengthen electricity supply in Kathmandu and other major demand centers. These investments are helping lay the foundations for cross-border power trade.