ADB’s support to Nepal expected to reach 2.4 billion US Dollars by 2029

Kathmandu: The Asian Development Bank (ADB)’s support to Nepal is expected to touch 2.4 billion US Dollars by 2029.

ADB President Masato Kanda, who is presently on a two-day visit to Nepal, said, “The ADB, as one of Nepal’s key multi-party development partners, continues to expand its support to Nepal. By 2029, our support here is expected to reach 2.4 billion US Dollars.”

The amount will be ensured for Nepal under its Country Partnership Strategy 2025-2029, with a special focus on job creation, private sector development, sustainable infrastructure development, public service delivery, resilience, empowerment of women, excluded and vulnerable communities, and digital transformation.

According to a press statement issued by the ADB here today, during the President’s visit, ADB signed two loan agreements totalling USD 165 million as part of its annual commitment. Of this, a 115 million USD project will bring reliable, safely managed water and sanitation services to more than 850,000 people, while a 50 million USD policy-based loan will modernise the systems that move goods across Nepal’s borders, helping businesses reduce costs, improve efficiency, and enhance competitiveness through digitalization and streamlined procedures.

Looking ahead, ADB plans to scale up its support, with annual lending expected to reach up to 660 million USD this year and 2.4 billion USD under ADB’s Country Partnership Strategy for Nepal 2025–2029.

This support will prioritise employment creation, private sector development, sustainable infrastructure, public service delivery, resilience, empowerment of women and disadvantaged and vulnerable groups, and digital transformation, while mobilising additional resources through co-financing and innovative instruments such as green and local currency bonds.

The ADB President met Prime Minister Balendra Shah in Kathmandu as ADB and Nepal mark 60 years of partnership and deepen support for the country’s economic transformation, job creation, and investment.

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

The President also toured ADB-financed projects to see first-hand the impact of ADB’s support. Together with Minister of Energy, Water Resources and Irrigation Biraj Bhakta Shrestha and Norwegian Ambassador Dagny Mjøs, Kanda virtually inaugurated two substations, which will help strengthen electricity supply in Kathmandu, the ADB said in the press statement.

With Nepal’s Minister of Education and Sports, Sasmit Pokharel, the ADB President then visited a school rebuilt after the 2015 earthquake and now equipped with modern science and technology facilities, part of ADB’s continued investment in disaster risk management and human capital.

New initiatives, including pilots on artificial intelligence learning, aim to equip teachers and students with skills for a changing labour market. In his meeting with Finance Minister Swarnim Wagle, discussions focused on Nepal’s reform agenda, including reforms of the business climate, investment mobilisation, and ADB’s support for the government’s growth and resilience priorities.

Likewise, Kanda met with key private sector leaders to exchange views on opportunities and constraints affecting investment, private sector development, and job creation in Nepal. It may be noted that the 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. Founded in 1966, ADB is owned by 69 members—50 from the region.

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