ADB approves $40 million concessional loan to boost Nepal’s digital transformation

Kathmandu / March 10: The Asian Development Bank (ADB) has approved a $40 million concessional loan to help the Government of Nepal accelerate its digital transformation agenda and expand access to high-impact digital services for citizens and businesses.

The Nepal Digital Transformation Project—the first in South Asia to be cofinanced under the ADB–World Bank Full Mutual Reliance Framework (FMRF)—will strengthen the country’s data hosting and cybersecurity infrastructure to enhance government-wide digital security and resilience, along with the core digital public infrastructure for modern, user-centric services.

The project will support key initiatives such as developing an integrated citizen service portal, improving the national social registry, establishing a secure government-wide data exchange platform for safe and efficient information sharing, and digitalising around 11 high-impact government services.

“Digital transformation is no longer optional—it is critical for improving public service delivery and supporting Nepal’s economic development,” said Arnaud Cauchois, ADB country director for Nepal.

“The reforms supported by ADB and the World Bank will make key services easier to access, reduce waiting times and administrative barriers, and enhance transparency in government processes, helping build greater trust between citizens and public institutions,” he said.

The project will be implemented by Nepal’s Ministry of Communications and Information Technology. It aligns with Nepal’s Digital Nepal Framework 2.0, the Sixteenth National Plan, the e-Governance Blueprint, and ADB’s country partnership strategy for Nepal for 2025–2029, which identifies digital transformation as a core cross-cutting priority.

The FMRF is an innovative cofinancing arrangement between ADB and the World Bank designed to streamline project preparation, reduce duplication, and deliver faster and more effective development support.

The World Bank is the lead lender for the Nepal Digital Transformation Project and approved a $50 million concessional loan for the initiative in February this year.