Asian Development Bank approves $40 million for digital Nepal projects

The Asian Development Bank (ADB) has given its approval for a concessional loan of $40 million for the digital transformation of Nepal. The funds will be utilized to digitally transform public services and enterprises to increase efficiency and work speed.

The loan comes as part of the joint effort for the project- Nepal Digital Transformation Project. It’s a joint effort with the World Bank, co-financed under the ADB-World Bank Full Mutual Reliance Framework (FMRF).

It is the first-of-its-kind project in South Asia.

What is the aim of the ADB $40 million loan for Nepal?

Together with the World Bank’s $50 million loan for Nepal, ADB’s lending will support the development of an integrated citizen service portal, data exchange platform, and digitalizing important 11 government services. We are likely to see further improvement of Nagarik App, civil registration, National ID card, etc., in the future. The gist is that the funds will go to the digitalization works for services that will improve public service delivery.

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

The reforms supported by ADB and 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 added.

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In Nepal, the Communications Ministry will lead the project. Its ethos aligns with the revised Digital Nepal Framework 2.0, e-Governance plans, and ADB’s partnership for 2025-2029.

This project framework aims to accelerate project preparation, reduce duplication, and improve development support.