Nepal and ADB
ADB supports Nepal in advancing sustainable growth by investing in infrastructure, improving access to basic services, and protecting poor and vulnerable people from disaster and climate risks.
ADB strongly supports inclusive growth in Nepal—consistent with the country partnership strategy for 2020–2024—helping to reduce poverty, enable private sector investments, lessen gender and social disparities, build infrastructure, develop human capital, transform agriculture, and mitigate the effects of disasters and climate change.
Driven by improved agricultural yields, increased electricity generation capacity, and a surge in tourist arrivals, Nepal’s gross domestic product growth is estimated to have expanded by 3.9% in fiscal year (FY) 2024, up from 2% in FY2024.
Sovereign operations. As of 31 December 2024, ADB has committed 519 public sector loans, grants, and technical assistance totaling 9ドル.3 billion to Nepal. ADB’s current sovereign portfolio in Nepal includes 33 loans and 10 grants worth 4ドル.17 billion.
ADB’s commitments for Nepal in 2024 totaled 1ドル.03 billion, including 86ドル million in Asian Development Fund (ADF) grants across multiple sectors. ADB’s financing for mitigation and adaptation in the country totaled 709ドル million or about 68% of the bank’s sovereign commitments in the country for the year. Over 33% of committed projects in 2024 are expected to enable the country’s private sector development.
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An electricity transmission and distribution strengthening project amounting to 311ドル million will help modernize Nepal’s electricity infrastructure, ensuring reliable power supply, jobs, and economic growth. The project’s 30ドル million grant component will fund training for women and disadvantaged groups for energy-related employability and enhance the management and technological capacity of the Nepal Electricity Authority.
ADB provided a 185ドル million (170ドル million concessional loan and a 15ドル million grant from ADF) for the Kathmandu Valley Water Supply Project (Phase 2) to ensure year-round safe and sustainable water for about 2 million residents by 2030. The project will help construct a climate-resilient Melamchi River water intake system, increase the capacity of the water treatment plant at Sundarijal, and expand the water supply distribution system by 830 kilometers.
ADB committed a 30ドル million loan and grant package for the Climate-Resilient Landscapes and Livelihoods Project for the communities in Karnali and Sudurpashchim provinces. The project involves working with more than 600 forest user groups to create new income opportunities through training programs on ecotourism and cultivating high-value medicinal and aromatic plants and non-timber forestry products.
A policy-based 100ドル million loan supporting Nepal’s green, resilient, and inclusive development (GRID) approach will help address policy, regulatory, and institutional challenges to encourage sustainable investments across sectors. ADB, the government, and 15 other development partners have jointly adopted GRID, which aligns with the country’s nationally determined contributions and adaptation plan.
An 85ドル million loan for the Irrigation Modernization Enhancement Project will help create a climate-resilient and efficient agriculture and irrigation system for 56,000 farm households in five provinces. ADB support includes integrated crop water management, agribusiness development, and access to financing for modern equipment. Farmers will also benefit from digital advisory services for weather updates, crop planning, and market insights.
ADB has approved the 125ドル million Mechanized Irrigation Innovation Project—including a 110ドル million concessional loan and a 15ドル million grant from ADF—to enhance year-round irrigation access in the Rautahat and Sarlahi districts in Madhesh Province. A private operator will install and manage deep tube wells, pump houses, and a 900-kilometer underground pressure pipe system. Prepaid smart card technology for reliable and flexible irrigation access will also be introduced.
Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Nepal as of 31 December 2024 amounted to 57ドル.56 million, representing 0.45% of ADB’s total private sector portfolio.
Cumulative disbursements. Cumulative sovereign and nonsovereign loan and grant disbursements to Nepal amount to 5ドル.71 billion. These were financed by regular and concessional ordinary capital resources, the ADF, and other special funds.
Operational challenges. Nepal’s rugged terrain, infrastructure gaps, inadequate human capital, and political and policy uncertainty continue to constrain economic growth and development. The country is highly vulnerable to disasters triggered by natural hazards, climate change, and environmental degradation. Weak governance has long affected the effectiveness of development assistance to Nepal. The country also faces challenges in smoothly implementing federalism.
ADB helps the government develop and strengthen its capacity to implement projects, procurement, contract administration, and social safeguards through the National Administrative Staff College. Along with other development partners, ADB is also providing policy support to improve overall public financial management and service delivery at the subnational levels in the federal structure. Innovative technical assistance funded by the Japan Fund for Prosperous and Resilient Asia and the Pacific will support the government in addressing systemic implementation challenges.
The report titled Powering Nepal: Five Decades of ADB–Nepal Partnership highlights ADB’s 50-year collaboration with the Nepal Electricity Authority, showcasing energy sector transformation and emphasizing the potential for private investment to boost energy security and sustainable growth. The report on COVID-19 Food Relief in Nepal: Lessons for the Future offers recommendations to improve resilience and responsiveness in future crises. A Study on Nepal’s National Health Insurance Program explores the need to strengthen the program to better protect households from health care costs and achieve universal health coverage by 2030. The Civil Society in Nepal: A Vital Role brief outlines the contributions of civil society organizations to sustainable development. The macroeconomic update published in September 2024 includes an assessment of customs reforms and trade facilitation programs in Nepal.
ADB Projects in Nepal Project data sheets for loans, grants, TAs
Number of Shares Held
15,606 (0.147% of total shares)
Votes
54,153 (0.407% of total membership, 0.627% of total regional membership)
*Overall capital subscription
203ドル.52 million
*Paid-in capital subscription
10ドル.19 million
* United States dollar figures are valued at rate as of 31 December 2024.
ADB Governor: Bishnu Prasad Paudel
ADB Alternate Governor: Ghanshyam Upadhyaya
ADB Director: Supak Chaiyawan (Thailand)
ADB Alternate Director: Nurussa’adah Muharram (Brunei Darussalam)
ADB Director’s Advisors: Azmin Bin Ishak (Malaysia) and Jessica Lim (Singapore)
Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.
Cumulative cofinancing commitments in Nepal:
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In 2024, Nepal received 2ドル million in grant cofinancing from the Community Resilience Partnership Program Trust Fund under the Community Resilience Financing Partnership Facility for the Climate-Resilient Landscapes and Livelihoods Project; 3ドル million in grant cofinancing from the Japan Fund for Prosperous and Resilient Asia and the Pacific for the Kathmandu Valley Water Supply Improvement (Phase 2); 22ドル.6 million in grant cofinancing from the European Union, 31ドル million in grant cofinancing from the Government of Norway, 100ドル million in loan cofinancing from the OPEC Fund for International Development, and 10ドル million in loan cofinancing from the Strategic Climate Fund for the South Asia Subregional Economic Cooperation Electricity Transmission and Distribution Strengthening Project; and 30ドル million in loan cofinancing from the Saudi Fund for Development for the Irrigation Modernization Enhancement Project.
ADB is preparing a new partnership strategy for Nepal for 2025–2029 that remains aligned with ADB’s Strategy 2030 and the government’s plan and policies. Empowering women and girls, social inclusion, and disaster resilience will continue to be prioritized. The bank will also continue to work with Nepal to further improve public financial management systems, increase project readiness and effective implementation, and improve sustainable asset management. Future programs will include integrated and innovative approaches and a greater focus on climate change adaptation and mitigation.
This article was originally published in the ADB and Nepal: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.
Last updated: 30 April 2025
Nepal Resident Mission
Established: 1989
Country Director: Arnaud Cauchois
Metro Park Building, Lazimpat,
Ward No. 2 P.O. Box 5017,
Kathmandu, Nepal
Tel: +977 1 4005120
Fax: +977 1 4005137
E-mail
Ministry of Finance
Singha Durbar,
Kathmandu, Nepal
Tel: +977 1 4211831
Fax: +977 1 4200417
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ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet.
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