Nepal, ADB Sign $40 Million Loan Deal for Digital Transformation Project

Kathmandu, April 27: The Government of Nepal and the Asian Development Bank have signed a concessional loan agreement worth 40 million US dollars to implement a digital transformation project.

The agreement was signed at the Ministry of Finance by Finance Secretary Dr Ghanashyam Upadhyay and ADB Country Director for Nepal Arnaud Cauchois.

According to the Ministry of Finance, the project is the first in South Asia to be co-financed under the ADB–World Bank Mutual Reliance Framework. The initiative aims to strengthen government data hosting systems and cybersecurity infrastructure to improve the security and resilience of digital services.

Key components of the project include the development of an integrated citizen service portal, improvement of the national social registry, and establishment of a secure government-wide data exchange platform for efficient information sharing. Around 11 high-impact public services will also be digitised.

The reforms, supported by ADB and the World Bank, are expected to simplify access to public services, reduce delays and administrative hurdles, and improve transparency in governance.

The project will be implemented by the Ministry of Communications and Information Technology. It aligns with national strategies including the Digital Nepal Framework 2.0 and the Sixteenth Plan.

The World Bank, serving as the lead lender, has also committed an additional 40 million US dollars in concessional financing for the project.