Nepal, ADB Sign $40 Million Concessional Loan Agreement for Digital Transformation Project
Kathmandu, April 28: The Government of Nepal and the Asian Development Bank (ADB) have signed a concessional loan agreement worth 40 million US dollars for the implementation of the Digital Transformation Project.
The agreement was signed by Finance Secretary Dr Ghanashyam Upadhyay and ADB Country Director for Nepal Arnaud Cauchois during a ceremony held at the Ministry of Finance on Tuesday. According to a press release issued by the ministry, the project is the first in South Asia to be co-financed under the ADB–World Bank Mutual Reliance Framework.
The project aims to strengthen the government’s data hosting and cybersecurity infrastructure, enhancing the security and resilience of national digital systems. It will support key initiatives such as the development of an integrated citizen service portal, improvement of the national social registry, establishment of a secure government-wide data exchange platform, and digitalization of around 11 high-impact public services.
The reforms backed by ADB and the World Bank are expected to make public services more accessible, reduce waiting times and administrative hurdles, and improve transparency in government processes, helping build greater trust between citizens and public institutions.
The Ministry of Communications and Information Technology will implement the project. It aligns with Nepal’s Digital Nepal Framework 2.0, the Sixteenth National Plan, the e-Governance Blueprint, and ADB’s Country Partnership Strategy for Nepal (2025–2029), which identifies digital transformation as a key crosscutting priority.
The World Bank is also contributing an additional 40 million US dollars as a concessional loan, serving as the lead lender. The loan agreement with the World Bank has already been signed.
Key components of the project include upgrading government digital platforms and shared services, strengthening cybersecurity preparedness, and building institutional and human resource capacity to ensure the sustainability and effective operation of digital systems.
