The Asian Development Bank (ADB) has approved a concessional loan of $115 million to enhance climate-resilient water supply and sanitation services and strengthen institutional capacity in rapidly urbanizing municipalities across Nepal.
The Integrated Water Supply and Sewerage Management (Sector) Project is expected to directly benefit more than 850,000 people living in 13 municipalities.
According to Arnaud Cauchois, ADB Country Director for Nepal, rapid urbanization is placing increasing pressure on essential urban services, leaving many communities with unreliable water supplies and inadequate sanitation facilities. He said the project aims to improve access to safe and dependable water and sanitation services, strengthen resilience to natural disasters and climate risks, and promote healthier, more sustainable, and inclusive cities.
Under the project, water supply coverage will be expanded through the construction of approximately 64 tube wells, treatment facilities with a combined capacity of around 60 million liters per day, and about 2,125 kilometers of water distribution networks.
The initiative will provide pressurized piped water connections to around 72,000 households, including vulnerable and women-headed families.
Sanitation services will also be upgraded in selected municipalities through the expansion of sewerage and drainage systems, construction and rehabilitation of wastewater treatment plants, and development of fecal sludge treatment facilities. More than 120,000 properties are expected to gain access to improved sanitation infrastructure.
The project incorporates climate adaptation and mitigation measures supported by $75.27 million in dedicated financing. It is expected to reduce greenhouse gas emissions by more than 22,000 tons of carbon dioxide equivalent annually.
In addition to physical infrastructure, the project will help strengthen municipalities’ capacity in asset management, financial sustainability, digital systems, and public awareness regarding hygiene and disaster risks.
The initiative supports the government’s Sixteenth Plan, aligns with ADB’s Country Partnership Strategy for Nepal, and builds on the bank’s longstanding cooperation with Nepal in promoting integrated and sustainable wastewater management.
ADB’s financing will be supplemented by $28.8 million in counterpart funding from the Government of Nepal. The Ministry of Infrastructure Development will implement the project with support from the Department of Water Supply and Sewerage Management and participating municipalities.
The total project cost is estimated at $143.8 million, and it is scheduled to be completed by June 2032.
