The Asian Development Bank (ADB) recently unveiled its new Country Partnership Strategy (CPS) for Nepal for 2025–2029, setting a comprehensive agenda to support the country’s inclusive, resilient, green, and employment-intensive economic growth.
Issuing a statement, the ADB said that the strategy focuses on three strategic priorities: private sector–led, employment-intensive, green economic transformation; inclusive and quality human capital development and public services; and environmental sustainability and climate resilience.
“As Nepal advances toward graduating from least developed country status, the CPS will support the country’s transition to a more sustainable and inclusive growth model,” the statement quoted ADB Country Director for Nepal Arnaud Cauchois as saying.
“This model prioritizes productivity gains and job creation through domestic private investment and foreign direct investment, improved access to quality infrastructure, skills development, deeper integration with regional and global value chains and exports, while also strengthening resilience to disasters and climate change.”
According to the ADB, the CPS is aligned with Nepal’s 16th Five-Year Plan, which seeks to promote good governance, social justice, and shared prosperity, and the government’s Green, Resilient, and Inclusive Development (GRID) approach, which focuses on integrating environmental sustainability, climate resilience and social inclusion into development efforts. The strategy incorporates cross-cutting themes such as digital development, good governance, and capacity building for federalism, and empowerment of women and disadvantaged and vulnerable groups to ensure that development benefits reach all segments of society, added the statement.
To maximize impact, ADB said it will ensure selectivity, integration, and synergies in its support by focusing on the primary objectives of private sector-led growth, youth employment, and resilience.
Given the dynamic country context and global uncertainties, ADB’s country program will remain flexible, reads the statement.
ADB further said its investments will be delivered through investment projects, policy-lending, and sector development programs that combine policy reforms, institutional strengthening and investments.
According to the ADB, the CPS was prepared through a joint strategic approach with the World Bank Group country partnership framework which creates opportunities for continuous deep collaborations between the two organizations.
ADB and the World Bank Group—together accounting for around 70% of Nepal’s development financing—have been increasing collaboration through joint policy dialogues, portfolio reviews, knowledge sharing, and potential co-financing of projects, under the 2025 Full Mutual Reliance Framework, added the statement.
Considering Nepal as a low-risk Group A developing member, ADB said the country will be eligible to access concessional ordinary capital resources (COL).
The ADB added that it expects to mobilize about $2.3 billion (COL) between 2025 and 2029 and selective grants from the Asian Development Fund 14 which are allocated on a project basis for specific thematic priorities.
According to the ADB, commitment of these funds is guided by government priorities, project readiness, and the country's performance.
ADB said it will also support the mobilization of additional resources through co-financing, innovative financing solutions, exploring mobilization of funds from green bonds and the issuance of thematic and local currency bonds (such as Nepalese rupee-linked bonds) to international investors.
