ASIATODAY.ID, KATHMANDU — The Asian Development Bank (ADB) has approved a concessional loan of $115 million to expand water supply, sanitation services, and climate resilience across rapidly growing municipalities in Nepal, in a major effort to address mounting pressure on urban infrastructure.
The financing will support the Integrated Water Supply and Sewerage Management (Sector) Project, which is expected to directly benefit more than 850,000 people in 13 municipalities and improve access to safe water and sanitation for thousands of households.
According to ADB, rapid urbanization has strained the delivery of essential public services in many Nepalese cities, leaving communities with unreliable water supplies and inadequate sanitation systems.
“Rapid urbanization in Nepal is placing increasing pressure on the delivery of crucial urban services, leaving many communities with unreliable water supply and limited sanitation access,” said ADB Country Director for Nepal Arnaud Cauchois.
He said the project would expand access to safe and reliable water and sanitation services, strengthen resilience against natural hazards and disaster risks, and help create healthier, more sustainable cities while supporting economic opportunities and inclusive growth.
Under the project, water supply infrastructure will be significantly expanded through the construction of approximately 64 tube wells, water treatment facilities with a combined capacity of about 60 million liters per day, and roughly 2,125 kilometers of distribution pipelines.
ADB estimates that around 72,000 households, including vulnerable and women-headed households, will receive pressurized piped water connections.
The initiative will also strengthen sanitation services through upgraded sewerage and drainage systems, along with the construction and rehabilitation of wastewater treatment plants and fecal sludge treatment facilities. More than 120,000 properties are expected to gain access to improved sanitation services.
Climate resilience is a central component of the project. Backed by $75.27 million in dedicated climate financing, the program incorporates both adaptation and mitigation measures and is expected to reduce greenhouse gas emissions by more than 22,000 tons of carbon dioxide equivalent annually.
In addition to physical infrastructure, the project will help municipalities improve asset management, financial sustainability, digital systems, and public awareness related to hygiene and disaster risks.
The project aligns with Nepal’s Sixteenth Plan and ADB’s country partnership strategy, while building on the bank’s longstanding support for integrated and sustainable urban wastewater management in the country.
ADB’s financing will be complemented by $28.8 million in counterpart funding from the Government of Nepal, bringing the project’s total value to $143.8 million. The Ministry of Infrastructure Development will oversee implementation, supported by the Department of Water Supply and Sewerage Management and participating municipalities.
The project is scheduled for completion by June 2032.
Founded in 1966, ADB is one of the world’s leading multilateral development institutions, supporting sustainable, inclusive, and resilient growth across Asia and the Pacific through financing, technical expertise, and strategic partnerships. (AT Network)
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