Nepal Secures $777.6 Million ADB Funding for Water, Energy, and Sustainable Development

The Government of Nepal and the Asian Development Bank (ADB) have signed agreements worth $777.6 million (around Rs 105.59 billion) to fund three major projects and a program aimed at improving water supply, energy, agriculture, and sustainable development.

Projects and Their Goals:

1. Kathmandu Valley Water Supply Improvement Project (Phase 2):
   • Aim: Provide safe and reliable water for Kathmandu Valley residents.
   • Key activities: Relocation and construction of the Melamchi intake, building a long tunnel, and expanding the Sundarijal Water Treatment Plant.
   • Total cost: $240 million (around Rs 32.59 billion).
     • ADB: $15 million (grant) and $170 million (loan).
     • Japan Fund for Prosperous and Resilient Asia and Pacific: $3 million (grant).
     • Government of Nepal: $52 million.
2. SASEC Electricity Transmission and Distribution Strengthening Project:
   • Aim: Meet Nepal’s rising energy demand and support green electricity exports.
   • Key activities: Build 290 km of transmission lines, construct five new substations, and upgrade two existing ones.
   • Total cost: $537 million (around Rs 72.93 billion).
     • ADB: $30 million (grant) and $311 million (loan).
     • EU: $22.6 million (grant).
     • Norway: $31 million (grant).
     • Strategic Climate Fund: $10 million.
     • Government of Nepal: $132.4 million.
3. Green, Resilient, and Inclusive Development (GRID) Program:
   • Aim: Promote sustainable and inclusive development by addressing barriers to investment in various sectors.
   • Budget support: ADB will provide $100 million (around Rs 13.58 billion).
4. Irrigation Modernization Enhancement Project (IMEP):
   • Aim: Modernize surface water irrigation systems and pilot hill lift irrigation.
   • Benefits: Improve agricultural productivity and climate resilience for farmers in project areas.

Signing Ceremony and Remarks:

The agreements were signed by Nepal’s Finance Secretary, Dr. Ram Prasad Ghimire, and ADB’s Country Director, Arnaud Cauchois.

• Finance Secretary’s Remarks:
  Dr. Ghimire thanked ADB for its support, highlighting the importance of these projects in improving water supply, energy, irrigation, and climate resilience, while also contributing to Nepal’s sustainable development goals.
• ADB Country Director’s Remarks:
  Arnaud Cauchois emphasized the importance of these initiatives for Nepal’s economy, particularly in areas like climate adaptation, agriculture, and water resource management. He reaffirmed ADB’s commitment to supporting Nepal’s development priorities.