Nepal signs $40m concessional loan with ADB for digital transformation

KATHMANDU: A concessional loan agreement worth $40 million has been signed between the Government of Nepal and the Asian Development Bank (ADB) for the implementation of Nepal Digital Transformation Project.

The agreement was signed today at the Ministry of Finance by Finance Secretary Dr Ghanshyam Upadhyaya and ADB Country Director for Nepal Arnaud Cauchois. The World Bank will also provide $40 million as a concessional loan as the lead lender; its loan agreement has already been signed.

According to a Ministry of Finance press release, the project is the first in South Asia to be co‑financed under the ADB–World Bank Mutual Reliance Framework.

The project will strengthen the government’s data hosting and cybersecurity infrastructure to enhance the security and resilience of government digital systems. It will support the development of an integrated citizen service portal, improvements to the national social registry, the establishment of a secure government‑wide data exchange platform for safe and efficient information sharing, and the digitalisation of about 11 high‑impact government services.

Reforms supported by the ADB and the World Bank are expected to make key services easier to access, reduce waiting times and administrative barriers, and enhance transparency in government processes, helping to build greater trust between citizens and public institutions.

The project will be implemented by the Ministry of Communication and Information Technology. It aligns with Nepal’s Digital Nepal Framework 2.0, the 16th periodic plan, the e‑Governance Blueprint, and ADB’s country partnership strategy for Nepal, 2025-29, which identifies digital transformation as a core cross‑cutting priority.

Key programmes under the project include upgrading government digital platforms and shared services, strengthening cybersecurity preparedness, and developing institutional and human resource capacity to ensure the operation and sustainability of digital systems.