KATHMANDU, June 18: The Asian Development Bank (ADB) has launched its new Country Partnership Strategy (CPS) for Nepal for 2025–2029, allowing the country to mobilize about US $2.3 billion between the stipulated time periods.
The strategy unveiled on Tuesday 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. The strategy looks for a comprehensive agenda to support the country’s inclusive, resilient, green, and employment-intensive economic growth.
According to the ADB, Nepal will be eligible to access concessional ordinary capital resources (COL) to mobilize aforementioned amounts between 2025 and 2029, along with selective grants from the Asian Development Fund 14 which are allocated on a project basis for specific thematic priorities. Commitment of these funds is guided by government priorities, project readiness, and the country's performance. The ADB 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.
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The ADB states that the strategy complies with Nepal's 16th Five-Year Plan while it will also support the country to tackle issues that could emerge in these segments as Nepal advances towards graduating from least developed country status.
“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,” said ADB Country Director for Nepal Arnaud Cauchois. “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.”
The CPS 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.
To maximize impact of the strategy, ADB will ensure selectivity, integration, and synergies in its support by focusing on the primary objectives of private sector-led growth, youth employment, and resilience. The ADB has assured adopting flexible policy regarding its country specific program amid growing uncertainties globally. According to the multilateral lending institution, its investments will be delivered through investment projects, policy-lending, and sector development programs that combine policy reforms, institutional strengthening and investments.
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 over two-third 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.
