ADB Expands Nepal Support with $2.4 Billion Investment Plan

The expanded assistance will focus on creating jobs, strengthening businesses and investing in infrastructure that supports long-term growth.

The Asian Development Bank (ADB) has reaffirmed its commitment to Nepal's economic future, announcing plans to provide up to $2.4 billion in support by 2029 as the country marks 60 years of partnership with the multilateral lender. The expanded assistance will focus on creating jobs, strengthening businesses and investing in infrastructure that supports long-term growth.

New funding targets water services and border trade

ADB President Masato Kanda announced during his visit to Kathmandu, where he met Prime Minister Balendra Shah and other senior government leaders to discuss Nepal's economic priorities and reform agenda. During the visit, ADB signed two loan agreements worth $165 million. The larger $115 million project will improve water supply and sanitation services for more than 850,000 people, helping communities gain access to safer and more reliable essential services. The second $50 million policy-based loan will support the modernisation of Nepal's border trade systems by introducing digital processes and streamlining customs procedures, making it easier and less costly for businesses to move goods across international borders. ADB said these investments are intended to improve efficiency, strengthen competitiveness and encourage greater economic activity.

Projects focus on energy, education and future skills

Mr. Kanda also visited several ADB-supported projects to review their progress. Together with Nepal's Minister of Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, and Norway's Ambassador Dagny Mjøs, he virtually inaugurated two electricity substations that will strengthen power supply in Kathmandu.

Another stop included a school rebuilt after the devastating 2015 earthquake. The facility now features upgraded science and technology classrooms, reflecting ADB's continued investment in education, disaster resilience and human capital development. The bank is also supporting new initiatives that introduce artificial intelligence learning pilots, helping teachers and students develop skills that match the needs of a changing workforce. Meetings with Finance Minister Swarnim Wagle centred on improving Nepal's business environment, attracting investment and advancing reforms that can support stronger and more resilient economic growth.

Long-term strategy aims to create jobs and boost investment

ADB also held discussions with private sector representatives to better understand the opportunities and challenges facing businesses in Nepal, with particular attention to investment, entrepreneurship and employment creation. Looking ahead, the bank expects its annual lending to Nepal to reach up to $660 million this year, forming part of the broader 2025–2029 Country Partnership Strategy worth $2.4 billion.

Future investments will prioritise employment, private sector development, sustainable infrastructure, stronger public services, climate resilience, digital transformation and programmes that expand opportunities for women and disadvantaged communities. ADB also plans to attract additional financing through co-financing arrangements and innovative funding tools, including green bonds and local currency bonds.