ADB approves $166 million financing package

KATHMANDU, DECEMBER 15: The Asian Development Bank (ADB) has approved a $166 million financing package to boost the local economy in Nepal by building climate and disaster-resilient cities that promote sustainable tourism and provide residents with a better quality of life. Of the amount, $6 million will be the grant from the Asian Development Fund. The cities include Pokhara Metropolitan City, Janakpur Sub-Metropolitan City and Devdaha, Lumbini Sanskritik, Sainamaina, Siddharthanagar, and Tilottama municipalities. According to the ADB, the Urban Resilience and Livability Improvement Project aims to contribute to the economic growth, resilience, and livability of the selected cities.

Under the package, ADB will strengthen the municipalities’ resilience to climate and disaster risks through infrastructure development by constructing 150 kilometres of drainage, rebuilding 100 km of roads, and 45 km of footpaths, the ADB Headquarters shared yesterday by issuing a statement.

“This project supports the government’s current National Urban Development Strategy to improve planning and investments in urban corridors and drive sustainable economic growth. It also continues ADB’s long-term engagement with Nepal to strengthen municipal governance and improve basic services delivery,” ADB Senior Urban Development Specialist Laxmi Sharma, was quoted as saying.“ADB’s support will help the concerned municipalities to design climate-resilient urban infrastructure, develop tourism potential, and strengthen institutional capacity to achieve their full economic potential and sustainable growth.”

The project is expected to support the development of tourism to boost the local economy and improve historical, cultural, and natural heritage sites.