Wednesday, June 18, 2025

ADB unveils Nepal country partnership strategy

Kathmandu, June 17

The Asian Development Bank (ADB) has unveiled its new Country Partnership Strategy (CPS) for Nepal for 2025–2029.

The strategy launched on Tuesday has set a comprehensive agenda to support the country’s inclusive, resilient, green, and employment-intensive economic growth, the ADB informed in a statement.

According to the ADB, the strategy focuses on three strategic priorities: private sector–led, employment-intensive, green economic transformation; inclusive and quality human capital development and public services; and environmental sustainability and climate resilience.

“As Nepal advances toward graduating from least developed country status, the CPS will support the country’s transition to a more sustainable and inclusive growth model,” said ADB Country Director for Nepal Arnaud Cauchois.

He maintained that this model prioritises productivity gains and job creation through domestic private investment and foreign direct investment, improved access to quality infrastructure, skills development, deeper integration with regional and global value chains and exports, while also strengthening resilience to disasters and climate change.

"The CPS is aligned with Nepal’s 16th periodic plan, which seeks to promote good governance, social justice, and shared prosperity, and the government’s Green, Resilient, and Inclusive Development (GRID) approach," read the statement.

The strategy incorporates cross-cutting themes such as digital development, good governance, and capacity building for federalism, and empowerment of women and disadvantaged and vulnerable groups to ensure that development benefits reach all segments of society.

The ADB said that it’s investments will be delivered through investment projects, policy-lending, and sector development programmes that combine policy reforms, institutional strengthening and investments.

The CPS was prepared through a joint strategic approach with the World Bank Group country partnership framework which creates opportunities for continuous deep collaborations between the two organisations.

The ADB and the World Bank Group together account for around 70 per cent of Nepal’s development financing, according to the multilateral donor.

"A low-risk Group A developing member, Nepal will be eligible to access concessional ordinary capital resources (COL) and ADB expects to mobilize about US$2.3 billion (COL) between 2025 and 2029 and selective grants from the Asian Development Fund 14 which are allocated on project basis for specific thematic priorities," informed the ADB.

Commitment of these funds is guided by government priorities, project readiness, and the country's performance. ADB will also support the mobilisation of additional resources through cofinancing, innovative financing solutions, exploring mobilization of funds from green bonds and the issuance of thematic and local currency bonds (such as Nepali rupee-linked bonds) to international investors.

Published in The Rising Nepal daily on 18 June 2025. 

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