ADB approves loan for customs modernisation in Nepal

Kathmandu, July 1

The Asian Development Bank (ADB) has approved a US$50 million (Rs. 7.55 billion) policy-based loan to help Nepal modernise its customs administration, boost trade, and support job creation.

The loan supports subprogramme II of the South Asia Subregional Economic Cooperation (SASEC) Customs and Logistics Reforms Program, building on earlier efforts to advance customs processes and develop the logistics sector in the country, the ADB informed in a statement on Wednesday.

According to the ADB, the programme will modernise customs through digitalisation, risk-based inspections, and streamlined procedures, while strengthening the logistics sector through better infrastructure planning, regulatory frameworks, and coordination. "These reforms will reduce trade costs, improve border predictability and supply chain efficiency, and support more efficient movement of goods and deeper integration into regional value chains," read the statement.

ADB Country Director for Nepal Arnaud Cauchois said that by making cross-border trade faster, more predictable, and cost-efficient, this programme will strengthen the business environment, enhance competitiveness, attract investment, and support quality job creation.

Despite recent progress, Nepal’s trade competitiveness remains constrained by complex customs procedures and an underdeveloped logistics sector. High inspection rates, paper-based processes, and fragmented supply chains have increased transaction costs and limited export potential.

The multilateral donor said that the programme addresses these challenges by promoting automation, enhancing service standards, and encouraging private sector participation in logistics development. By improving trade efficiency and reducing logistics costs, it is expected to help expand exports, improve the reliability of cross-border trade, and support higher private sector participation. 

Published in The Rising Nepal daily on 2 July 2026.      

Nepal to receive $115m ADB loan for water supply, sewerage management

 Kathmandu, June 19

The Asian Development Bank (ADB) has approved a US$115 million (Rs. 17.30 billion) concessional loan to improve water supply and sanitation services and strengthen institutional capacities in rapidly growing municipalities across Nepal.

The fund will be used to implement the Integrated Water Supply and Sewerage Management (Sector) Project, the ADB informed in a statement on Friday, adding that the project is expected to benefit more than 850,000 people in 13 municipalities.

The project will expand water supply coverage by constructing about 64 tube wells, treatment facilities with a combined capacity of about 60 million liters per day, and approximately 2,125 km of water distribution network. Around 72,000 households, including vulnerable and women-headed households, will receive pressurised piped water connections.

Sanitation services will also be expanded and improved in selected municipalities through upgraded sewerage and drainage networks, new or rehabilitated wastewater treatment plants, and faecal sludge treatment facilities. More than 120,000 properties are expected to gain access to enhanced sanitation services.

“The project integrates adaptation and mitigation measures, supported by US$75.27 million in dedicated funding, and is expected to reduce greenhouse gas emissions by more than 22,000 tonnes of carbon dioxide equivalent annually,” read the statement.

The ADB’s financing for the project is complemented by US$28.8 million (Rs. 4.33 billion) in government counterpart funding. The Ministry of Infrastructure Development will implement the project, with support from the Department of Water Supply and Sewerage Management and participating municipalities. The project, with a total value of $143.8 million (Rs. 21.64 billion), is scheduled for completion by June 2032.

According to ADB Country Director for Nepal Arnaud Cauchois, this project will expand access to safe and reliable water and sanitation services and strengthen resilience to natural hazards and disaster risks. 

Published in The Rising Nepal daily on 20 June 2026.   

World Bank interested to expand investment in education

Kathmandu, May 14

The World Bank has expressed interest in increasing investment in Nepal’s education sector.

During a courtesy call with Minister for Education, Science and Technology Sasmit Pokharel at his office on Thursday, the World Bank’s Country Director for Nepal, David Sislen conveyed the institution’s desire to expand its investment in Nepal’s education sector.

The meeting included detailed discussions on education sector reform, expansion of infrastructure, and the development of a technology-friendly education system, informed the Ministry of Education, Science and Technology (MoEST).

During the discussions, the World Bank said that it was interested in further investment and cooperation in Nepal’s education sector, particularly in the development of schools and educational infrastructure. According to the Ministry, positive discussions were also held on making partnerships more effective in order to support long-term reforms and expand access to quality education.

On the occasion, Minister Pokharel briefed the delegation on the MoEST's current priorities, and said that the government was advancing educational infrastructure development, strengthening foundational learning, and expanding digitalisation and technology in education as key agendas.

“Building a quality, inclusive and technology-friendly education system is the primary objective of the government. Cooperation with development partner organisations will be further strengthened,” said Minister Pokharel

The meeting also discussed expanding access to digital education, improving learning outcomes, and modernising the education system in line with contemporary needs.

Published in The Rising Nepal daily on 15 May 2026.           

MCA-Nepal begins road upgrading works

Kathmandu, Apr. 30

Millennium Challenge Account Nepal (MCA-Nepal) begun the works for upgrading the 40km Dhan Khola–Lamahi section of the East-West Highway on Wednesday.

It informed in a statement that the road upgrading and maintenance works will, for the first time in Nepal, apply Full Depth Reclamation and Superpave as modern construction methods that offer important gains in quality, durability, and sustainability.

"By creating a stronger and long-lasting road surface, reusing existing asphalt materials, and reducing environmental impacts, these approaches will help deliver a more reliable and cost-effective investment in the long term," read the statement.

The project will also widen the road to 12 meters, with a 7-meter carriageway and 2.5-meter shoulders on both sides.

Speaking at the project launch event, Chief Minister of Lumbini Province Chet Narayan Acharya appreciated the use of modern technologies like FDR and Superpave, which will ensure better quality and longer-lasting roads.

“This is a major step forward for our province and the people who rely on this highway every day. The upgrading of this road section will not only make travel safer and more reliable, but also open up new opportunities for local businesspeople, farmers, and entrepreneurs,” he said.

Similarly, Scott Urbon, the Charge d'Affaires a.i. at the U.S. embassy, said that the launch of the project marks an important milestone in the partnership between the United States and Nepal.

"Through the MCC Nepal Compact, we are investing in high-quality, durable infrastructure that will lower transportation costs, improve safety, and connect communities to markets and opportunities. This project reflects our trust in Nepal’s future and our joint dedication to sustainable economic growth,” he said.

The Road Maintenance Project is a key component of the MCC Nepal Compact, the project supported with the Millennium Challenge Corporation (MCC), aimed at lowering transportation costs and improving road conditions across Nepal.

Likewise, speaking at the event, Sushil Babu Dhakal, Joint Secretary at the Ministry of Physical Infrastructure and Transportation and MCA-Nepal Board Member, said that MCA-Nepal’s investments are designed to complement the government’s plans and programmes.

"This collaboration reflects our shared commitment to building resilient infrastructure and expanding economic opportunities for our communities," he said.

MCC Deputy Resident Country Director Sanjay Poudyal said that this milestone reflects MCC’s commitment to supporting Nepal in building resilient, cost-effective infrastructure using advanced technologies that ensure long-term performance.

Similarly, MCA-Nepal Executive Director Khadga Bahadur Bisht expressed MCA-Nepal's commitment to delivering this project efficiently, transparently, and to the highest quality standards.

Nepal has signed a five-year project worth USD 747 million (including US$197 from the Government of Nepal) to construct about 315-km 400kV Nepal-India cross-border transmission line and three substations, an upgrade road with technology transfer.

The project was launched in August 2023 with a fund of US$ 697 while in November 2025, the USA announced an additional US$ 50 million in grant for the same project.

 

Published in The Rising Nepal daily on 1 May 2026.         

Nepal donates US$ 300,000 to Myanmar

Kathmandu, Feb. 17

Nepal has donated US$ 300,000 to Myanmar to reconstruct the Mahamuni Pagoda, which was damaged by the devastating earthquake in March 2025.

Harishchandra Ghimire, Ambassador of Nepal to Myanmar, handed over the donation to U Than Oo, Secretary General of Mahamuni Pagoda Trustee, Mandalay, in a programme organised at the Pagoda on Monday.

Speaking on the occasion, Ghimire stated that Nepal and Myanmar have been supporting each other in the most difficult time and the donation is for the reconstruction of the Stone Inscription House in the compound of Mahamuni Pagoda, which was damaged by the quake. Acknowledging the support from Nepal, Mayor of Mandalay City U Kyaw San expressed his gratitude to the government of Nepal, the Embassy of Nepal in Yangon informed in a statement.

Subsequently, Ambassador Ghimire also handed over the donation amount of US$50,000 to the President of Gangaghat Hindu Temple Trustee Pawan Bajoria.

Local Nepali community, including the President of All Myanmar Gorkha Hindu Religious Association, Sagar Ghimire, attended the programme. 

Published in The Rising Nepal daily on 18 February 2026.     

WB approves $50m for digital public infra in Nepal

Kathmandu, Feb. 10

The World Bank has approved $50 million in financing to boost Nepal’s digital public infrastructure and digitise public services, fundamentally changing how services are delivered to the people.

Approved by the WB’s Board of Executive Directors on Tuesday, the Nepal Digital Transformation Project will invest in digital platforms including an integrated online citizen service portal and an integrated social registry; a secure government-wide data exchange; and a digital locker to manage verifiable credentials and digital wallet.

The WB informed in a statement that the project will also help digitise high-impact services including land administration with other services being added in a phased approach. The project aims to boost private sector investment in the data infrastructure market by improving legal and regulatory frameworks.

According to the WB, to promote trust in the digital economy, the project will invest in electronic signatures, cybersecurity, and data governance.

“By investing in core digital platforms and digitalising services, this project will help deliver enhanced services to people and businesses in an inclusive and transparent manner thereby improving service delivery, public sector efficiency, and good governance,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.

 

The project will be financed under a joint co-financing arrangement between the World Bank and the Asian Development Bank (ADB) under the Full Mutual Reliance Framework.

 

The World Bank is the lead lender while the ADB will serve as the trail lender and contribute $40 million. ADB’s management is expected to present the project to their Board for consideration in March 2026.

 

The project will be implemented by the Ministry of Communications and Information Technology and Department of National ID and Civil Registration. 

Published in The Rising Nepal daily on 11 February 2026.  

India hands over over 250 vehicles in second tranche

Kathmandu, Jan. 29

The second tranche of election-related assistance from India has been handed over to Nepal.

Charge d’affaires of the Embassy of India in Nepal Dr. Rakesh Pandey handed over more than 250 vehicles to the Government of Nepal in a programme held at the Ministry of Finance at the Singha Durbar in Kathmandu on Thursday.

These supplies are a part of the assistance sought by the government in connection with preparations for the upcoming elections in the country.

Speaking on the occasion, Finance Minister Rameshore Prasad Khanal thanked the government and people of India for the supplies and appreciated their significance in preparations for the upcoming elections, according to the Embassy.

The first tranche of such election-related assistance by the Government of India was handed over to Nepal on January 20. More deliveries are expected to take place in batches in the coming weeks.

“The ongoing cooperation and support from the Indian side is not only an apt reflection of the multi-faceted and multi-sectoral development partnership that exists between both countries, but also symbolises the deep mutual trust and friendship between the people of Nepal and India,” read a statement issued by the Embassy. 

Published in The Rising Nepal daily on 30 January 2026. 

India to build two health posts in Indrawati

Kathmandu, Dec. 16

India is supporting Indrawati Rural Municipality with Rs. 40 million to build two health post buildings.

Jhamka Nath Nepal, Chairman of Indrawati Rural Municipality and Shri Narayan Singh, First Secretary, Embassy of India in Kathmandu jointly laid the foundation stones for the construction of two Health Post Buildings at Ward No.3 and Ward No.6 of Indrawati Rural Municipality, Sindhupalchowk District, on Tuesday.

According to the Embassy, these Health Posts will have two-storeyed buildings with suitable facilities. These projects have been taken up as High Impact Community Development Projects (HICDPs), and will be implemented through the Indrawati Rural Municipality. 

Chairman of the local body and other stakeholders appreciated the development support being extended by India. They expressed confidence that the new health infrastructure created would help enhance accessibility to health services in the region, read the embassy issued by the Embassy. 

"The implementation of HICDPs reflects the continued support of India in bolstering the efforts of Nepal in achieving growth and development, apart from augmenting infrastructure in priority sectors," it said. 

Published in The Rising Nepal daily on 17 December 2025.

Japan offers Rs. 31.76 billion loan for Koteshwor Junction Improvement Project

Kathmandu, Dec. 3

A loan agreement for the Koteshwor Junction Improvement Project is signed between the governments of Nepal and Japan.

Japan has provided loan assistance equivalent to 34.59 billion Japanese yen (around Rs. 31.76 billion) for the project. The loan, to be provided through the Japan International Cooperation Agency (JICA), will carry a grace period of 10 years, a repayment period of 30 years, and an annual interest rate of 0.2 per cent.

Under this project, an underpass and a flyover will be constructed along the Koteshwor and Jadibuti sections, which is expected to significantly ease the movement of vehicles travelling through Kathmandu, Lalitpur, Bhaktapur and the BP Highway, and help reduce traffic congestion. The project will be implemented through the Department of Roads under the Ministry of Physical Infrastructure and Transport, the Finance Ministry informed in a statement.

Finance Secretary Dr. Ghanashyam Upadhyay and Japanese Ambassador to Nepal Maeda Toru signed the Exchange of Notes for the loan support in the presence of Finance Minister Rameshore Prasad Khanal at the Ministry of Finance on Wednesday.

Likewise, the loan agreement was signed by Joint Secretary Dr. Dhaniram Sharma, Chief of the International Economic Cooperation Division at the Ministry of Finance, and Mitsuzaki Masuki, Chief Representative of JICA Nepal.

Ambassador Maeda expressed confidence that the implementation of the Koteshwor Junction Improvement Project through Japan’s concessional loan assistance would bring significant improvements to the Kathmandu Valley’s transport system, and also recalled the decades-long friendly relationship between Nepal and Japan.

Likewise, Finance Minister Khanal said, under Nepal–Japan cooperation, this project aims to bring progress to one of the major traffic-congested points in the Kathmandu Valley, and expressed confidence that it would bring long-term improvements to the Capital’s transport management.

Published in The Rising Nepal daily on 4 December 2025.

EU pledges post-graduation support to Nepal

Kathmandu, Nov. 29

The European Union (EU) has welcomed Nepal's Transition Strategy to graduate from LDC status to 'developing nation' and expressed commitment to continue cooperation through the Multi-Annual Indicative Programme (MIP).

The MIP is a seven-year plan that will last till 2027, and incorporates the EU's development cooperation priorities and funding for a specific partner country. It guides the EU's financial and technical assistance, often matching its policy priorities such as Green Deal and Sustainable Development Goals (SDGs) with the need of the partner country.

Since it incorporates economic growth and sustainable development alongside the promotion of democracy and human rights, it is likely to help in Nepal's transition period after LDC graduation.

During the 16^th meeting of the Joint Commission (JC) in Brussels on Friday, the EU and Nepal reviewed the progress of EU's development cooperation in various sectors where the former assured of its support to Nepal, the Embassy of Nepal in Brussels informed in a statement on Saturday.

On the occasion, Nepal appreciated and welcomed the MIP for aligning with Nepal's plans and priorities.

The meeting also discussed criteria for acceding to the Generalised Scheme of Preferences Plus (GSP+) that is considered as a support to Nepal in the post-graduation scenario. This special trade arrangement provides developing countries with duty-free access to the European market for over 7,200 products.

The meeting was co-chaired by Paola Pampaloni, Acting Managing Director for Asia and the Pacific of the European External Affairs Service of the EU and Foreign Secretary of Nepal Amrit Bahadur Rai.

The EU and Nepal reiterated their commitment to work together in upholding democracy and human rights, promoting good governance, realising SDGs, combating disaster risks, promoting investment, and addressing global challenges such as climate change.

"The EU welcomed Nepal's commitment to restoring stability and democracy and the work of the interim government under the leadership of Prime Minister Sushila Karki, including reforms centred on fiscal discipline, good governance, accountability and improved service delivery," read the statement.

Likewise, the EU expressed appreciation for Nepal's position on Ukraine in line with the objectives and principles of the UN Charter.

The EU and Nepal also took stock of the impact of climate change and latest developments, including at COP-30.

Nepal underlined that air safety remains a key priority area and reasserted their commitment to address all observations made by the EU's assessment visit in September 2023. The EU took note of the request of Nepal to delist Nepali airlines from the European Union Air Safety List in recognition of the progress made by the Civil Aviation Authority of Nepal.

Published in The Rising Nepal daily on 30 November 2025.

ADB approves $100m loan for Nepal reforms

Kathmandu, Nov. 28

The Asian Development Bank (ADB) has approved a US$100 million policy-based loan to advance public financial management reforms in Nepal.

This support will be used for improved public expenditure and debt management at the national level and enhanced resource planning, financial management, and devolved service delivery at the subnational level, the ADB Headquarters informed in a statement.

“The programme will catalyse reforms which will strengthen fiscal sustainability, improve governance, and empower local governments,” said ADB Country Director for Nepal Arnaud Cauchois.

According to him, by enabling local governments to plan and raise revenues more effectively, it will reduce dependency on central transfers, advance Nepal’s federal governance framework, and build long-term resilience.

The initiative aligns with Nepal’s five-year plan and builds on ADB’s previous policy-based concessional support to reinforce Nepal’s fiscal governance and advance decentralisation reforms.

The programme will strengthen fiscal sustainability and fiscal federalism by increasing fiscal space through expenditure rationalisation, revenue generation, fiscal risk reduction, innovative financing, and improved management and governance of public enterprises.

Key reforms at the national level include operationalising Nepal’s first fiscal risk and strategy report; assessing contingent liabilities of state-owned enterprises; institutionalising annual borrowing plans in line with medium-term debt strategy; implementing management and governance policy, and loan and share investment policy for public enterprises.

It also includes upgrading the Public Enterprises Management Information System for real-time monitoring and oversight; and operationalising the Public Financial Management (PFM) reform strategy and integrated PFM System. These reforms will contribute to improved expenditure planning and management and reduced fiscal risks.  

"To bridge Nepal’s development financing gap, the programme will help establish an Alternative Development Financing Fund to mobilise domestic and international capital—including bonds, equity investments, and remittance pools—for resilient infrastructure development," read the statement.

At the subnational and local levels, reforms include digitising taxpayer registration system for provincial governments, operationalising digitised local revenue administration system, operationalising public asset management system, formulating market-based property valuation criteria, and mapping natural resources with revenue-generating potential.

Additionally, the development of local project banks and medium-term expenditure frameworks that are gender- and climate-responsive, will support coordinated planning and strategic public investment decisions. According to the ADB, these reforms will contribute to increased revenue and improved resource planning and management at the subnational and local levels. 

Published in The Rising Nepal daily on 29 November 2025.

Construction of 18-km transmission line, substation under MCC begins

Kathmandu, Nov. 26

Millennium Challenge Account Nepal (MCA-Nepal) initiated the construction of the 18-km transmission line and the New Butwal Substation in Sunawal, Nawalparasi (West).

The new infrastructure, part of the Millennium Challenge Corporation (MCC) Nepal Compact, will strengthen Nepal’s electricity grid and establish a major energy trade interconnection between Nepal and India, informed the MCA-Nepal in a statement on Wednesday.

Minister of Finance Rameshore Prasad Khanal, the U.S. Ambassador to Nepal Dean Thompson, and MCC Resident Country Director Diane Franscisco initiated the construction. Executive Director of MCA-Nepal Khadga Bahadur Bisht joined them.

“This project reflects the government's strong commitment to expanding clean energy access, enhancing regional power trade, and supporting our national goal of long-term economic growth. With the support of MCC and MCA-Nepal, we are turning agreements into action for the benefit of the country,” said FM Khanal.

Ambassador Thompson said that the United States is proud to stand with Nepal as a committed partner in building a more reliable energy system. “Projects like this transmission line and substation will not only help keep the lights on for families and businesses, but also create opportunities for trade, growth, and prosperity across the region. Today’s event is a testament to what we can achieve together,” he stated.

According to Bisht, the transmission line and substation will create new opportunities for power trade and bring long-term benefits to our citizens. He expressed MCA-Nepal's commitment to implementing the project in close partnership with the government.

The 18-km transmission line will connect the 400kV New Butwal Substation to the Nepal-India border. Together, these projects represent nearly US$ 50 million in investment and will help Nepal export clean hydropower to India under the landmark 2024 power trade agreement, which envisions 10,000 megawatts (MW) of electricity exports over the next decade.

"The transmission line and New Butwal Substation are vital to Nepal’s economic future because they will connect the country’s growing hydropower supply to regional markets," said the MCA-Nepal.

By strengthening the backbone of Nepal’s high voltage grid, the project will make electricity delivery more reliable for households and businesses, reduce power losses, and enable Nepal to sell power to other countries.

The MCC of the US government has provided grant of US$ 550 million while Nepal has agreed to put in US$ 197 million to construct the high-power Nepal-India cross-border transmission line. A small portion of the fund will be used for road upgradation project.

After much hiatus, political bickering and division of opinion, Nepal endorsed the project through a parliamentary approval.

The implementation had begun on August 20, 2023 with a five-year mandate.

Published in The Rising Nepal daily on 27 November 2025.

MCC approves additional $50 mn grant for Nepal

Kathmandu, Nov. 20

The Millennium Challenge Corporation (MCC) has announced an additional grant finance of US$ 50 million for MCC Nepal Compact.

MCC is a United States government agency that provides large-scale assistance to developing countries to promote economic growth and reduce poverty.

The US Embassy in Kathmandu informed in a statement on Wednesday that the Government of Nepal and the US government’s MCC have announced the additional grant which brings the Compact’s total value to US$747 million - US$550 million from the United States and US$197 million from Nepal.

"The added resources will help deliver the Compact’s core objectives, including completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling increased regional power trade," read the statement.

By improving grid reliability and market access, the Compact is expected to support international connectivity and promote American excellence and best practices in energy infrastructure.

According to the Embassy, the compact also expands opportunities for US companies and technology to enter Nepal’s market.

"For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity. The MCC Nepal Compact continues that record through no-debt, grant-based assistance focused on high-impact infrastructure," reads the statement. 

Published in The Rising Nepal daily on 21 November 2025.

Japan grants Rs. 2.6 billion to reconstruct BP Highway

Kathmandu, Oct. 30

The government of Japan has agreed to provide financial support worth R. 2.6 billion for the repair and reconstruction of the BP Highway, which was damaged by the floods in September last year.

The government of Nepal and JICA signed a grant agreement of up to 2.8 billion Japanese Yen (Rs. 2.6 billion) for the Emergency Rehabilitation of Sindhuli Road Affected by Floods on Thursday.

Secretary at the Ministry of Finance (MoF) Ghanashyam Upadhaya and Ambassador of Japan to Nepal Maeda Toru signed the exchange of notes for the same.

Similarly, the agreement was signed by chief of the Foreign Aid Coordination Division (FACD) at the MoF Dhani Ram Sharma, and Chief Representative of JICA Nepal Office Matsuzaki Mizuki.

According to a statement issued by the MoF, Finance Minister Rameshore Prasad Khanal and Home Minister Om Prakash Aryal were present at the signing ceremony.

Between September 26 and 29, 2024, a torrential rainfall in Nepal caused severe flooding and landslides, significantly damaging a few sections of the BP Highway - a vital route connecting Kathmandu to the Eastern Tarai.

“The grant aid is expected to support Nepal’s effort to strengthen the disaster resilience of the Sindhuli Road and recover from the damages for efficient operation,” read the statement.

The 160 km national highway connecting Kathmandu to the Mid and Eastern Tarai, was completed with Japanese Grant Aid of around 25.8 billion Japanese Yen, the largest such grant globally.

“Since becoming operational in March 2015, it has significantly reduced travel time from over 9 hours to just 5 hours between Kathmandu and Bardibas,” read the statement.

JICA has also supported the construction of Kathmandu-Bhaktapur Road (9.1 km) and the ongoing construction of Nagdhunga Tunnel.

  Published in The Rising Nepal daily on 31 October 2025.     

Germany to support Nepal in governance and development

Kathmandu, Oct. 8

Nepal and Germany signed two significant agreements on financial and technical cooperation to support Nepal in energy, health, agriculture, governance and inclusive development.

The Ministry of Finance (MoF) said in a statement on Wednesday that Joint Secretary of the MoF Dhaniram Sharma and Ambassador of Germany to Nepal, Udo Volz, signed the agreements.

Under the financial cooperation agreement, the German Government has committed up to 20 million Euros to the Power Distribution Strengthening Programme. This project is focused on upgrading and reinforcing Nepal’s electricity distribution system to ensure a reliable and efficient power supply throughout the country.

"The project will be implemented through the Nepal Electricity Authority (NEA), and a separate implementation agreement will be signed between the NEA and the German Development Bank (KfW). The project is expected to be completed within five years, by 5 September 2029," read the statement.

The technical cooperation agreement is based on the long-standing Framework Agreement signed in 1974 and its amendment in 2009. Under this agreement, Germany has pledged an estimated 21 million Euros to support Nepal in several key sectors.

In the health sector, the assistance will continue to support the National Strategy for Gender Equality and Social Inclusion (S2GESI), focusing on strengthening quality infrastructure within the health system.

Likewise, in agriculture and private sector development, the Green Resilient Agricultural-centred Private Sector Economic Development (GRAPE) programme will be promoted to encourage inclusive and climate-resilient economic growth. 

A project aimed at reforming the revenue system will be advanced, contributing to sustainable development. In addition, advisory and technical assistance will be provided through the Studies and Experts Fund. The implementation of this agreement is also to be completed within five years, September 2029.

Joint Secretary Sharma said that these agreements reflect the depth and stability of Nepal–Germany relations and demonstrate the shared commitment of both nations to inclusive and sustainable development. Speaking at the same event, German Ambassador Volz said that the new commitments have further strengthened cooperation with Nepal and its people, particularly in the fields of energy, sustainable economic growth, and health.

  Published in The Rising Nepal daily on 9 October 2025.    

Foreign aid commitment exceeds budget estimates

ADB and World Bank lead support in roads, climate, and electricity transmission projects

 

Kathmandu, July 16

Nepal has received foreign aid commitment of Rs. 273.04 billion in the Fiscal Year 2024/25 which is above the annual estimates announced by the budget of the same year.

Statistics from the Ministry of Finance (MoF) showed that the country received the commitments of Rs. 215.54 billion for loan and Rs. 57.50 billion for grants. In the budget of 2024/25, the government had anticipated to secure Rs. 270 billion in foreign aid – Rs. 217.67 billion in foreign loans and Rs. 52.33 billion in foreign grants.

The commitments Nepal received were in infrastructure, transport, environment and climate, governance, disaster management, agriculture and irrigation, water and education. Among these, transport sector received the commitment of Rs. 63.94 billion in projects like provincial and local roads improvement, bridge improvement and maintenance, and strategic road connectivity and trade improvement.

Energy sector witnessed a commitment of Rs. 56.41 billion in the projects like power distribution consolidation, and SASEC Electricity Transmission and Distribution. Most of the aid is to be mobilised in the SASEC project.

Likewise, aid commitment in environment, forest and climate change sector stood at Rs. 55.87 billion where priority projects are Green, Resilient and Inclusive Development (GRID), climate resilient landscapes and livelihood, managing watersheds, and forests and prosperity.

Other major sectors receiving the foreign aid in loans and grants are irrigation Rs. 28.47 billion, water Rs. 25.53 billion, disaster management Rs. 20.13 billion, social Rs. 9.6 billion and agriculture Rs. 9.4 billion. Smaller cooperation commitments were made in governance, and education as well.

Nepal's development partners (DPs) in the year are the World Bank, Asian Development Bank, Foreign, Commonwealth and Development Office (FCDO) of the UK, Germany, the European Union, China, Norway, International Fund for Agricultural Development, Switzerland, World Vision International, Japan and Strategic Climate Fund. 

With commitments of above Rs. 118 billion, ADB has emerged as the largest development partner for Nepal. It is supporting irrigation, climate resilient livelihood, water supply, SASEC electricity transmission and distribution, GRID and floods and landslide emergency response.

Similarly, with about Rs. 100 billion (including Rs. 1.6 billion in grants) aid commitment, the World Bank remains the second largest DP for Nepal. It is supporting road improvements, disaster resilience, GRID, bridge improvement and trade improvement.

Although complete data for the FY 2023/24 is not available, the country received foreign aid commitments of Rs. 120.59 billion by May 22, 2024 – about seven weeks remaining for the FY to conclude. Commitments included Rs. 74.24 billion in loans and Rs. 46.34 billion in grants.

That year, major sectors receiving foreign aid were health, road, urban development, education, public finance management, industry and climate, governance, social, agriculture, waste management and tourism.

The ADB was the largest donor in 2023/24 as well followed by the WB, EU, UK, Germany, Japan, Switzerland and Finland.

Published in The Rising Nepal daily on 17 July 2025.   

Japan visit fruitful: FM Rana

Kathmandu, May 25

Foreign Minister Dr. Arzu Rana Deuba said that her recently concluded five-day visit to Japan was fruitful.

Upon her return to the country last night, she informed that during the visit, she held several important meetings, including with the Foreign Minister of Japan, and discussed Nepal-Japan cooperation and various development projects, noting that these engagements were beneficial for the country, the Minister's Secretariat informed in a statement on Sunday.

She also took part in an international conference on senior citizens held in Tokyo.

FM Dr. Rana said, "During this visit, discussions were held on various aspects of Nepal-Japan relations, including Japanese assistance and projects in Nepal. The conference on senior citizens also provided an opportunity to learn about the policies adopted by other countries regarding senior citizens, as well as their conditions and management systems."

A bilateral meeting between FM Dr. Rana and her Japanese counterpart Takeshi Iwaya took place on May 21 in Tokyo. On that occasion, discussions were held on various matters of mutual interest and concern, including Nepal-Japan bilateral relations.

Likewise, on May 22, she also held talks with Dr. Akihiko Tanaka, President of the Japan International Cooperation Agency (JICA). During the meeting, Minister Dr. Rana expressed gratitude for the long-standing support extended by the Japanese government through JICA in Nepal’s economic, social, and other sectors, and discussed the projects currently being implemented or completed with JICA's support.

Earlier, Japan’s Vice-Minister for Foreign Affairs Akiko Ikuina had paid a courtesy call on FM Dr. Rana.

Upon her return to Nepal on Saturday night, she was welcomed at the Tribhuvan International Airport by Foreign Secretary Amrit Bahadur Rai and other officials. She had departed for Japan last Monday.

Published in The Rising Nepal daily on 26 May 2025. 

Nepal, Japan sign 573 million Yen grant agreement

Kathmandu, May 16

Nepal and Japan have signed a memorandum of understanding for an additional grant of 573 million Japanese Yen for the Dhulikhel Hospital Trauma and Emergency Centre Improvement Project.

The agreement was signed by Finance Secretary Ghanshyam Upadhyaya and Japanese Ambassador to Nepal Maeda Toru in the presence of Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel and Japan’s Vice-Minister for Foreign Affairs, Ikui Akiko on Friday.

Earlier, in October 2023, the Government of Japan had agreed to provide a grant of 3.29 billion Yen for the implementation of the same project.

Following the signing ceremony, Finance Minister Paudel and Vice-Minister Akiko held a separate bilateral meeting, the Ministry of Finance informed in a statement.

 

Published in The Rising Nepal daily on 17 May 2025. 

INGOs need consent of local authority to run projects

Kathmandu, May 8

The recently-launched Foreign Aid Mobilisation Policy, 2025 of Nepal aims to bring greater accountability and transparency to the utilisation of foreign aid channelled through Non-Governmental Organisations (NGOs).

A key aspect of the strategy focuses on ensuring that foreign aid mobilised by the International NGOs supports areas identified as crucial for the nation's development.

Internalising the new federal structure of the country, it mandates that INGOs must secure prior agreement from the local authorities where they intend to implement projects. Details of this assistance will be recorded in the Ministry's aid management information system, enhancing oversight.

Likewise, in a move towards more inclusive planning, the policy states that the selection of projects by INGOs must involve the participation of the federal, provincial, and local levels of government in the project formulation stage. Crucially, NGOs, both national and international, must implement projects in the specific local authority from which they obtained prior consent for their international fundraising initiatives.

The policy that replaced the earlier Development Cooperation Policy, 2019 emphasises aligning international assistance with Nepal's national needs and priorities.

Furthermore, the policy stipulates that both national and international NGOs seeking to implement projects funded through their international fundraising efforts must now do so via the Social Welfare Council (SWC).

Where INGOs partner with local NGOs for project implementation, they will be required to submit details of these agreements to the SWC. The Council will then facilitate the implementation process based on the information provided.

The policy also addresses the broader coordination of foreign aid, aiming for the efficient utilisation of resources through strengthened ownership and coordination across different levels and bodies.

It bars the mobilisation of foreign aid through the NGOs  in the religious, political and sensitive national areas. To check the duplication of the programmes and projects, the government can designate the geographical or thematic areas.

Likewise, the foreign aid operated programmes should not have administrative cost exceeding 20 per cent of the total budget. 

 

Sub-national participation

The policy has also adopted a policy to enhance the ownership of the sub-national governments in the foreign aid and ensure its efficient use.

Regarding grant aid, loan assistance under the Government of Nepal's responsibility, and technical assistance, the Ministry of Finance (MoF) will enter into financial agreements and then forward these to the provincial and local levels for implementation.

Loan agreements initiated at the request of provincial and local authorities will involve the Nepal government signing subsidiary loan agreements with the relevant levels, allocating funds through the budget, and potentially managing principal and interest payments via an escrow account.

Except loans in the education and health sectors, the policy outlines that loan assistance for other projects and programmes will be channelled through subsidiary loan agreements with the relevant provincial and local levels, based on feasibility.

Grant aid disbursed through the budget system will be allocated to provinces and local authorities as conditional grants.

 

Co-investment of local authority

The policy further clarifies that the respective local authorities will bear the costs for co-investment required for development projects and programmes operating at the federal, provincial, and local levels.

Importantly, the relevant levels of government will be represented in discussions and agreements with development partners aimed at securing financial resources for projects they have recommended.

To enhance inter-agency coordination, the policy mandates the active participation of relevant local authorities, provinces, and federal ministries/bodies in the mobilisation of foreign aid.

Any challenges encountered in the process will be addressed through joint meetings led by the MoF, involving the concerned local authorities, provinces, federal ministries/bodies, and development partners, with an emphasis on finding swift resolutions, according to the policy. 

Published in The Rising Nepal daily on 9 May 2025. 

US govt authorises continuity of activities under MCC

Kathmandu, Mar. 23

The United States government has authorised the continuation of certain activities under the Millennium Challenge Corporation (MCC) Nepal Compact, despite an ongoing review of foreign aid policies.

However, this authorisation does not indicate any predetermined outcome of the review, the Millennium Challenge Account Nepal Development Board (MCA-Nepal) informed in a statement on Friday.

The permitted activities include crucial procurement processes and operational tasks necessary for office functions.

"The MCA-Nepal is managing the resumption of activities while reaffirming its commitment to transparency. It continues to coordinate closely with the Government of Nepal and the MCC, ensuring compliance with the ongoing review and awaiting further updates on the situation," read the statement.

Earlier, on 14 February, the MCC had officially informed the GoN that disbursements under the MCC Compact have been suspended in accordance with a 90-day funding freeze issued by US President Donald Trump on 20 January 2025.

In a letter sent to Nepal’s Ministry of Finance (MoF), the MCC stated that all financial disbursements related to ongoing projects in Nepal would be halted as per the executive order.

The Nepal Government and the MCC had signed the Compact on 15 September 2017, primarily aimed at funding infrastructure development, including electricity transmission and road maintenance projects.

Earlier, on 28 January, USAID had also informed the MoF that grant assistance for four projects had been suspended. These included the Health Direct Financing Project, Agricultural Direct Financing Project, Education Direct Financing Project, and the Inclusive Policy Direct Financing Project.

Published in The Rising Nepal daily on 24 March 2025.