The Government of Nepal and the Asian Development Bank (ADB) signed a concessional loan and grant agreement worth USD 157 million (approximately Rs 21.23 billion) on Wednesday to implement the Mechanized Irrigation Innovation Project (MIIP) and the Climate Resilient Landscapes and Livelihoods Project (CRLLP).

Finance Secretary Dr Ram Prasad Ghimire, on behalf of the government, and ADB’s Country Director for Nepal Resident Mission Arnaud Cauchois signed the agreement at the Finance Ministry on Wednesday.

The MIIP, funded through a USD 15 million grant and USD 110 million loan, aims to introduce advanced irrigation technologies in Rautahat and Sarlahi districts of Madhes Province. Key innovations include a prepaid card system to provide farmers water based on their needs.

The project targets over 121,000 farmers, seeking to improve agricultural productivity, ensure year-round irrigation, and enhance food security. It will adopt the Design, Build, and Operate (DBO) model and establish an irrigation management company to ensure the long-term sustainability of groundwater irrigation.

The CRLLP is backed by a USD 22 million grant and a USD 10 million loan. It focuses on improving climate resilience in Karnali and Sudurpaschim provinces, which are particularly vulnerable to climate change impacts.

The project aims to address water insecurity, promote nature-based livelihoods, and empower local communities through sustainable management of water resources. Key initiatives include agroforestry and forest management practices to enhance adaptation to climate challenges.

Finance Secretary Ghimire expressed gratitude to ADB for its continued support, highlighting the transformative impact of these projects on irrigation infrastructure and climate resilience.

ADB Country Director Cauchois reaffirmed ADB’s commitment to Nepal’s development goals, emphasizing the projects’ contributions to climate adaptation, agricultural productivity, and water security. -- RSS