Kathmandu, June 19: The Asian Development Bank (ADB) has approved a USD 115 million concessional loan to improve climate-resilient water supply and sanitation services while strengthening institutional capacity in rapidly urbanizing municipalities across Nepal.
The Integrated Water Supply and Sewerage Management (Sector) Project will directly benefit more than 850,000 people in 13 municipalities by expanding access to safe drinking water and improved sanitation services.
ADB Country Director for Nepal Arnaud Cauchois said the project addresses the growing pressure that rapid urbanization has placed on essential urban services.
“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,” Cauchois said.
He added that the project will improve access to safe and reliable water and sanitation services, strengthen resilience to natural hazards and disaster risks, and help create healthier, more sustainable cities while supporting inclusive economic growth.
Under the project, ADB will support the construction of approximately 64 tube wells, water treatment facilities with a combined capacity of around 60 million liters per day, and about 2,125 kilometers of water distribution pipelines.
Around 72,000 households, including vulnerable and women-headed households, will receive pressurized piped water connections.
The project will also expand sanitation infrastructure through upgraded sewerage and drainage networks, new and rehabilitated wastewater treatment plants, and fecal sludge treatment facilities. More than 120,000 properties are expected to benefit from improved sanitation services.
The initiative incorporates climate adaptation and mitigation measures backed by USD 75.27 million in dedicated climate financing. It is expected to reduce greenhouse gas emissions by more than 22,000 tonnes of carbon dioxide equivalent annually.
In addition to physical infrastructure, the project will strengthen municipal capacity in asset management, financial sustainability, digital systems, and public awareness on hygiene and disaster risk management.
The project supports the Government of Nepal’s Sixteenth Plan and aligns with ADB’s country partnership strategy, building on the bank’s long-term support for integrated and sustainable urban water and wastewater management.
ADB’s USD 115 million financing will be complemented by USD 28.8 million in counterpart funding from the Government of Nepal, bringing the total project cost to USD 143.8 million.
The Ministry of Infrastructure Development will implement the project with support from the Department of Water Supply and Sewerage Management and participating municipalities. The project is scheduled for completion by June 2032. #nepal
