ADB Sets $2.4 Billion Target to Reshape Nepal’s Infrastructure

Marking six decades of partnership, the Asian Development Bank has committed $2.4 billion to Nepal through 2029. President Masato Kanda announced the strategy in Kathmandu this week, shifting the lender’s focus toward digital trade modernization, climate resilience, and large-scale infrastructure projects designed to spark private sector growth.

Editorial·July 8, 2026·reads: 2,487

ADB Sets $2.4 Billion Target to Reshape Nepal’s Infrastructure

The bank’s immediate roadmap includes two new loan agreements totaling $165 million. A $115 million allocation targets water and sanitation improvements for 850,000 residents, while a $50 million policy-based loan aims to digitize border customs, lowering trade costs for local businesses. During his visit, Kanda joined Energy Minister Biraj Bhakta Shrestha to inaugurate electricity substations in Kathmandu, signaling a pivot toward stabilizing the national power grid.

Beyond basic utilities, the lender is deepening its footprint in human capital. Recent site visits highlighted schools rebuilt after the 2015 earthquake, now equipped with artificial intelligence learning pilots. These initiatives form the foundation of a broader 2025–2029 Country Partnership Strategy. With annual lending projected to hit $660 million this year, the bank intends to leverage green bonds and local currency instruments to attract additional private investment, prioritizing job creation and digital transformation across the country.