The Asian Development Bank (ADB) has launched its new Country Partnership Strategy (CPS) for Nepal for the period 2025–2029, opening the door for the country to access approximately US $2.3 billion in concessional financing and selective grants.
The CPS centers on three core priorities: private sector–led, employment-intensive, green economic transformation; inclusive human capital development and improved public services; and advancing environmental sustainability and climate resilience. It aligns with Nepal’s 16th Five-Year Plan and aims to support the country’s transition to an inclusive, resilient, and green growth model as it moves toward graduation from least developed country (LDC) status.
ADB Country Director for Nepal, Arnaud Cauchois, stated that the strategy emphasizes domestic private and foreign direct investments, infrastructure quality, skills enhancement, export competitiveness, and disaster resilience. The CPS will integrate key cross-cutting themes such as digital development, governance, capacity-building for federalism, and social inclusion—particularly for women and marginalized communities.
Nepal will access these funds through concessional ordinary capital resources (COL) and targeted grants from the Asian Development Fund 14. The allocation of funds will be guided by project readiness, performance, and national priorities. ADB also plans to mobilize additional resources via co-financing, green bonds, and local currency bond issuance.
To ensure effective delivery, the CPS emphasizes selectivity, integration, and synergy—focusing on the goals of private sector–led growth, youth employment, and long-term resilience. ADB will employ a flexible approach, using investment projects, policy-based lending, and sector development programs that combine reforms and institutional strengthening.
The strategy was prepared jointly with the World Bank Group’s country partnership framework under the 2025 Full Mutual Reliance Framework. The two institutions, which collectively provide over two-thirds of Nepal’s development financing, plan to enhance cooperation through joint policy dialogues, knowledge sharing, and co-financing arrangements.
