Government Signs Loan Agreement Worth NPR 2.5 Billion During ADB President’s Visit to Nepal
June 22, Kathmandu – During the visit of Asian Development Bank (ADB) President Masato Kanda to Nepal, a loan agreement amounting to NPR 2.5 billion was signed. Nepal has agreed to obtain a concessional loan of USD 16.5 million (equivalent to NPR 2.5 billion) from ADB. The agreement was finalized on Monday in the presence of Finance Minister Dr. Swarnim Wagle and Masato Kanda to fund two national projects. Finance Secretary Dr. Ghanshyam Upadhyay and ADB’s Resident Representative in Nepal, Anoo Kushwaha, signed the agreement.
Nepal plans to invest this loan in the Integrated Drinking Water and Sewerage Management Project and the South Asia Subregional Economic Cooperation (SASEC) Supply Chain Management Improvement Program (Subprogram 2). According to Amrit Lamsal, Undersecretary and spokesperson of the Ministry of Finance, USD 11.5 million has been allocated for the sewerage management-related project, and USD 5 million for the supply chain management improvement project. These funds will be used to develop integrated infrastructure for drinking water and sewerage management at the local level. Furthermore, the loan will support modernizing customs procedures and logistics services under this second loan agreement.
During the program, Finance Minister Dr. Swarnim Wagle highly appreciated the assistance from ADB towards Nepal’s development and expressed confidence that the partnership would strengthen further in the future. ADB President Masato Kanda reaffirmed the bank’s commitment to continue and enhance its six-decade-long cooperation with Nepal. He assured sustained support to help Nepal confront existing external and internal challenges, aligning ADB’s priorities with Nepal’s development goals.
Senior officials from the Government of Nepal and the Asian Development Bank were present at the event. Regarding the two projects funded by the loan, under ADB’s financial support, the government plans to modernize customs administration with the aim of promoting trade and creating employment by borrowing USD 5 million. This project seeks to upgrade customs systems through technology, risk-based inspections, and simplified procedures. According to ADB, the loan will also strengthen the supply chain sector by improving quality infrastructure, regulatory frameworks, and coordination systems. These improvements aim to reduce trade costs, make cross-border trade more predictable, and enhance supply chain management capacity. Additionally, the project targets efficient cargo movement and contributions to regional value chains.
On the other hand, the second project focuses on drinking water infrastructure in small and medium-sized towns, benefiting approximately 850,000 people across 13 districts, as noted by ADB.
