ADB President Masato Kanda Visits Nepal; Government Signs NPR 25 Billion Loan Agreement
Kathmandu / July 6: The Government of Nepal has signed a concessional loan agreement worth USD 165 million (approximately NPR 25 billion) with the Asian Development Bank (ADB) during the official visit of ADB President Masato Kanda to Nepal.
The agreement was signed on Monday in the presence of Finance Minister Dr. Swarnim Wagle and ADB President Kanda to finance two major development projects. The agreement was formally signed by Finance Secretary Dr. Ghanshyam Upadhyaya and ADB Nepal Country Director Arnaud Cauchois.
The concessional financing will support the Integrated Water Supply and Sewerage Management Project and the South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation and Logistics Enhancement Program – Subprogram 2.
According to Joint Secretary and Ministry of Finance spokesperson Amrit Lamsal, USD 115 million has been allocated to the water supply and sewerage management project, while USD 50 million will finance the trade facilitation and logistics enhancement program.
The investment in the water and sanitation project aims to develop integrated drinking water and sewerage infrastructure in local governments across Nepal. Meanwhile, the second loan will be used to modernize customs procedures and improve logistics services.
Speaking at the signing ceremony, Finance Minister Dr. Wagle highly appreciated the Asian Development Bank’s longstanding support for Nepal’s development and expressed confidence that the partnership would continue to strengthen in the years ahead.
ADB President Masato Kanda reaffirmed the Bank’s commitment to deepening its six-decade partnership with Nepal. He stated that ADB would continue supporting Nepal in addressing its internal and external challenges and emphasized that the Bank’s priorities remain closely aligned with Nepal’s development agenda.
Senior officials from the Government of Nepal and the Asian Development Bank also attended the ceremony.
Projects Financed Under the Loan Agreement
Under the SASEC Trade Facilitation and Logistics Enhancement Program, Nepal will receive USD 50 million to modernize its customs administration, promote trade, and generate employment opportunities.
The project aims to transform Nepal’s customs system through technology-driven reforms, including the adoption of risk-based inspections and simplified customs procedures. According to ADB, the program will also strengthen the country’s logistics sector through improved infrastructure, regulatory reforms, and enhanced institutional coordination.
These reforms are expected to reduce trade costs, make cross-border trade more predictable, improve supply chain resilience, facilitate efficient cargo movement, and strengthen Nepal’s participation in regional value chains.
The Integrated Water Supply and Sewerage Management Project will focus on improving drinking water infrastructure in small and medium-sized towns across Nepal. ADB estimates that approximately 850,000 people in 13 districts will benefit from the project.