ADB sanctions $40m loan to Nepal

Kathmandu, Mar. 11

The Asian Development Bank (ADB) has sanctioned a US$40 million concessional loan to Nepal which will be used in expanding access to high‑impact digital services for citizens and businesses.

The Nepal Digital Transformation Project—the first in South Asia to be cofinanced under the ADB–World Bank Full Mutual Reliance Framework (FMRF)— will strengthen the country’s data hosting and cybersecurity infrastructure to enhance government-wide digital security and resilience, said the ADB in a statement on Tuesday.

According to the multilateral donor, the loan will be used in initiatives such as developing an integrated citizen service portal, improving the national social registry, establishing a secure government-wide data exchange platform for safe and efficient information sharing, and digitalizing about 11 high‑impact government services. 

ADB Country Director for Nepal Arnaud Cauchois said that the reforms supported by ADB and the 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.

The project, that aligns with Digital Nepal Framework 2.0, e-Governance Blueprint and 16^th Plan, will be implemented by the Ministry of Communications and Information Technology.

The FMRF is an innovative cofinancing arrangement between ADB and the World Bank designed to streamline project preparation, reduce duplication, and deliver faster and more effective development support.

The World Bank is the lead lender for the Nepal Digital Transformation Project, approving its US$50 million concessional loan in February this year.

  Published in The Rising Nepal daily on 12 March 2026.