ADB Approves $40 Million Loan for Nepal’s Digital Transformation

The Asian Development Bank (ADB) has approved a $40 million concessional loan to help Nepal accelerate its digital transformation agenda and expand access to high‑impact digital services for citizens and businesses.

“The Nepal Digital Transformation Project—the first in South Asia to be cofinanced under the ADB–World Bank Full Mutual Reliance Framework (FMRF)— will strengthen the country’s data hosting and cybersecurity infrastructure to enhance government-wide digital security and resilience, along with core digital public infrastructure for modern, user‑centric services,” ADB said in a press statement on Tuesday, March 10. “It will support key initiatives such as developing an integrated citizen service portal, improving the national social registry, establishing a secure government-wide data exchange platform for safe and efficient information sharing, and digitalizing about 11 high‑impact government services.” 

The FMRF is an innovative cofinancing arrangement between ADB and the World Bank designed to streamline project preparation, reduce duplication, and deliver faster and more effective development support.

“Digital transformation is no longer optional—it is critical for improving public service delivery and supporting Nepal’s economic development,” the statement quoted ADB Country Director for Nepal Arnaud Cauchois as saying. “The reforms supported by ADB and the World Bank will make key services easier to access, reduce waiting times and administrative barriers, and enhance transparency in government processes—helping build greater trust between citizens and public institutions.”

The project will be implemented by the Ministry of Communications and Information Technology. 

It aligns with Nepal’s Digital Nepal Framework 2.0, 16th National Plan, e‑Governance Blueprint, and ADB’s country partnership strategy for Nepal, 2025–2029, which identifies digital transformation as a core crosscutting priority, the statement added.

The World Bank is the lead lender for the Nepal Digital Transformation Project, approving its $50 million concessional loan in February this year.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific.