Nepal and ADB Sign $157 Million Agreement for Irrigation and Climate Resilience Projects
Nepal has entered into a significant partnership with the Asian Development Bank (ADB) by signing a concessional loan and grant agreement worth $157 million (approximately Rs. 21.23 billion). The funds will support the implementation of two major initiatives: the Mechanized Irrigation Innovation Project (MIIP) and the Climate Resilient Landscapes and Livelihoods Project (CRLLP).
The agreements were formalized during a signing ceremony at the Ministry of Finance. Representing the Government of Nepal, Finance Secretary Dr. Ram Prasad Ghimire signed the agreements for MIIP, which comprise a $110 million concessional loan and a $15 million grant. ADB's Nepal Resident Mission Country Director, Arnaud Cauchois, signed on behalf of the development partner. According to a press release by the Finance Ministry, these projects aim to strengthen Nepal's irrigation infrastructure and climate resilience.
The MIIP will be implemented in Rautahat and Sarlahi districts of Madhes Province. This project is designed to introduce modern irrigation systems, including a prepaid card-based water access mechanism. Over 121,000 farmers are expected to benefit from this initiative, which seeks to boost agricultural productivity, ensure year-round irrigation, and address food security challenges. For long-term sustainability, the project will adopt the Design, Build, and Operate (DBO) model and establish an irrigation management company to oversee the groundwater irrigation system.
Similarly, the CRLLP agreement includes a $10 million concessional loan and a $22 million grant. Targeting the climate-vulnerable Karnali and Sudurpaschim provinces, the project will focus on addressing water insecurity, promoting nature-based livelihoods, and empowering local communities. Key activities include sustainable water resource management, agroforestry, silviculture, and forest management. By fostering adaptive measures, the CRLLP aims to equip communities to handle the challenges posed by climate change.
During the signing ceremony, Finance Secretary Ghimire expressed his appreciation for ADB's continued support. He highlighted the projects’ potential to enhance irrigation systems and motivate climate-resilient practices among communities most at risk from climate impacts.
ADB Country Director Arnaud Cauchois reaffirmed the institution's commitment to supporting Nepal's development goals. He emphasized the importance of these projects in advancing agricultural productivity, climate adaptation, and water security, aligning with the country’s long-term priorities.
These initiatives are expected to contribute significantly to Nepal’s efforts in sustainable agriculture and climate resilience, marking another milestone in the nation’s development journey.
