ADB Approves $115M to Improve Water Services in Nepal

ADB estimates that the improvements will help cut greenhouse gas emissions by more than 22,000 tons of carbon dioxide equivalent each year.

The Asian Development Bank (ADB) has approved a concessional loan of $115 million to help Nepal expand and improve water supply and sanitation services in rapidly growing urban areas. The funding will support the Integrated Water Supply and Sewerage Management Project, which is expected to benefit more than 850,000 people across 13 municipalities. As urban populations continue to grow, many local authorities are struggling to keep pace with increasing demand for reliable water and sanitation services.

ADB officials say the project is designed to address these pressures by strengthening infrastructure, improving service delivery, and helping municipalities become more resilient to natural disasters and climate-related risks.

Expanded Water and Sanitation Access for Thousands

A significant portion of the investment will focus on increasing access to safe drinking water. The project includes the construction of around 64 tube wells, new water treatment facilities capable of producing approximately 60 million liters of water per day, and more than 2,100 kilometers of distribution pipelines.

Around 72,000 households are expected to receive pressurized piped water connections, including vulnerable families and women-headed households that often face greater challenges accessing reliable services.

Sanitation infrastructure will also see major upgrades. Selected municipalities will receive improved sewerage and drainage systems, along with new or rehabilitated wastewater treatment plants and fecal sludge treatment facilities.

More than 120,000 properties are expected to gain access to better sanitation services, helping improve public health and environmental conditions in urban communities.

Climate Resilience and Sustainable Growth at the Core

The project places a strong emphasis on climate adaptation and sustainability. More than $75 million has been allocated to measures aimed at improving resilience to climate impacts and reducing environmental risks. ADB estimates that the improvements will help cut greenhouse gas emissions by more than 22,000 tons of carbon dioxide equivalent each year. The project also includes efforts to strengthen municipal management systems, improve financial sustainability, expand the use of digital tools, and increase public awareness about hygiene and disaster preparedness. Officials believe these investments will help cities better manage future growth while creating healthier and more livable communities.

The total value of the project is $143.8 million, with Nepal's government contributing $28.8 million in counterpart funding. The Ministry of Infrastructure Development will lead implementation, supported by the Department of Water Supply and Sewerage Management and participating municipalities. Construction and implementation activities are expected to continue through June 2032, supporting Nepal's broader efforts to modernize urban infrastructure and improve the quality of life for residents across the country.