Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Asian Development Bank has approved a $40 million concessional loan to support Nepal’s digital transformation efforts and expand access to high-impact digital services for citizens and businesses.
The funding will support the Nepal Digital Transformation Project, aimed at strengthening the country’s digital public infrastructure, improving cybersecurity capacity, and modernizing government services.
The project marks a significant milestone as it is the first initiative in South Asia to be cofinanced under the ADB–World Bank Full Mutual Reliance Framework (FMRF), an arrangement designed to streamline development financing and accelerate project implementation.
Under the project, Nepal will upgrade its data hosting facilities and cybersecurity infrastructure, enabling stronger protection of government systems and improved resilience against cyber threats. The program will also help build core digital public infrastructure that will allow government services to be delivered more efficiently through modern digital platforms.
Key components of the project include the development of an integrated citizen service portal, improvement of the national social registry, and the establishment of a secure government-wide data exchange platform that will allow government agencies to safely share information and coordinate services.
The project also plans to digitalize around 11 high-impact public services, aiming to simplify administrative procedures and reduce the need for citizens to visit government offices physically.
According to Arnaud Cauchois, digital transformation is essential for improving governance and economic growth in Nepal.
“Digital transformation is no longer optional—it is critical for improving public service delivery and supporting Nepal’s economic development,” Cauchois said. “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 Nepal and is aligned with several national policy frameworks including the Digital Nepal Framework 2.0, the Sixteenth National Plan, and the government’s e-Governance Blueprint.
It also supports the priorities outlined in the ADB Country Partnership Strategy for Nepal (2025–2029), which identifies digital transformation as a major cross-cutting pillar for development.
The Full Mutual Reliance Framework (FMRF) between ADB and the World Bank is designed to improve cooperation between the two institutions by reducing duplication in project preparation and enabling faster delivery of development assistance.
Under this arrangement, the World Bank serves as the lead lender for the Nepal Digital Transformation Project, having already approved a $50 million concessional loan in February 2026.
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