KATHMANDU: The government has signed a concessional loan agreement with the Asian Development Bank for the implementation of a Digital Transformation Project aimed at strengthening the country’s digital governance infrastructure.
The agreement was signed during a programme held at the Ministry of Finance on Monday. It was signed by Finance Secretary Dr Ghanshyam Upadhyay and ADB Country Director Arnaud Cauchois.
According to the Ministry of Finance, the project is the first in South Asia to be implemented under a co-financing interoperability framework between ADB and the World Bank.
Focus on digital infrastructure and cybersecurity
The project aims to strengthen government data hosting systems and cybersecurity infrastructure, enhancing the security and resilience of Nepal’s digital public systems.
It will also support the development of modern, citizen-friendly digital public infrastructure to improve service delivery.
Under the agreement, ADB will provide USD 40 million in concessional co-financing, while the World Bank will contribute an additional USD 40 million as the lead lender. A separate loan agreement with the World Bank has already been concluded earlier.
Expected outcomes
The project is expected to modernize government digital systems, strengthen institutional frameworks, and expand the use of digital platforms to improve efficiency, transparency, and citizen access to services.
It is aligned with Nepal’s 16th Periodic Plan and the government’s 100-day governance reform action plan.
Major components of the project include upgrading government digital platforms and shared services, strengthening cybersecurity readiness, and building institutional and human resource capacity to ensure sustainable digital system operations.
ADB Country Director Cauchois said the project would play a key role in supporting Nepal’s commitment to using digital technology for inclusive development and efficient public service delivery.
Finance Secretary Upadhyay said Nepal has made significant progress in digital governance but emphasized the need for further improvements in system integration and service delivery.
He expressed confidence that the ADB-supported project would accelerate digital transformation and enhance citizen-centric public services.
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