Upgrading Rural Roads in Nepal: ADB Approves $100 Million Funding

The Asian Development Bank (ADB) has granted approval for a concessional loan amounting to USD 100 million to fund the additional financing of an ongoing project focused on the enhancement of rural roads in Nepal.

The allocated funds will be utilized for the purpose of upgrading a total of 324 kilometers of roads.

According to ADB’s announcement on Wednesday, the ongoing project, which was initially sanctioned on December 17, aims to improve rural roads with the objective of fostering agricultural growth and agribusiness development.

The overarching goal of the project is to enhance road accessibility for approximately 7.5 million individuals residing in 16 districts across five states that heavily rely on agriculture.

ADB Principal Rural Development Specialist for South Asia, Andrew Brubaker, emphasized the significance of upgrading and connecting rural roads to the core road networks in Nepal, as the country is landlocked. He stated that these efforts are crucial for elevating living conditions in rural areas and fostering the economic growth of Nepal.

Furthermore, ADB said it would provide an additional technical assistance grant worth USD 1 million to support the implementation of the project and facilitate institutional strengthening.