Kathmandu, Dec 11: The Government of Nepal and the Asian Development Bank (ADB) have signed concessional loan and grant agreements totaling Rs 21.23 billion (USD 157 million) for the implementation of two projects: the Mechanized Irrigation Innovation Project (MIIP) and the Climate Resilient Livelihoods and Land Management Project (CRLLP).
The agreements were signed today at the Ministry of Finance by Finance Secretary Dr Ram Prasad Ghimire and ADB’s Country Director Arnaud Cauchois.
Funding Details
– MIIP will receive Rs 14.88 billion (USD 110 million) as a concessional loan and Rs 2 billion (USD 15 million) as a grant.
– CRLLP will receive Rs 1.35 billion (USD 10 million) as a concessional loan and Rs 2.97 billion (USD 22 million) as a grant.
Project Focus Areas
Mechanized Irrigation Innovation Project (MIIP)
This project will be implemented in Rautahat and Sarlahi districts of Madhesh Province and aims to introduce advanced irrigation technologies. A key feature is the introduction of prepaid card systems, enabling farmers to access water as needed. The project is expected to benefit over 121,000 farmers by enhancing agricultural productivity, ensuring year-round irrigation, and promoting food security.
Climate Resilient Livelihoods and Land Management Project (CRLLP)
CRLLP will focus on rural communities in Karnali and Sudurpashchim Provinces, helping them adapt to the impacts of climate change. The project will address drinking water challenges, promote nature-based livelihoods, and strengthen local communities through sustainable water management, agroforestry, and forest management initiatives.
During the agreement, Finance Secretary Dr Ghimire highlighted that these projects will bolster food security, enhance irrigation technologies, and contribute to tackling the impacts of climate change through sustainable water and land management practices.
ADB Country Director Cauchois underscored the projects’ potential to bring significant contributions to Nepal’s economy. He reaffirmed ADB’s commitment to supporting Nepal in climate adaptation, agricultural productivity, and water security, describing these agreements as critical milestones toward sustainable development and climate resilience.
