The Asian Development Bank (ADB) has approved a $40 million concessional loan to support Nepal’s efforts to expand digital public services and strengthen the country’s digital infrastructure.
The funding will go toward the Nepal Digital Transformation Project, a major initiative aimed at improving how citizens and businesses access government services. The project will focus on building stronger data hosting systems and enhancing cybersecurity to ensure safer and more reliable digital operations across government institutions.
A key part of the project involves developing an integrated online portal that will allow citizens to access multiple public services in one place. The plan also includes improvements to Nepal’s national social registry, which helps manage and deliver social protection programmes. In addition, the project will establish a secure platform for sharing data across government agencies and support the digitalisation of around 11 priority public services.
The initiative is being implemented by Nepal’s Ministry of Communications and Information Technology. It aligns with the government’s broader plans to modernise public administration through the Digital Nepal Framework 2.0, the Sixteenth National Plan and the national e-governance strategy.
The project is also notable because it marks the first time in South Asia that the Asian Development Bank and the World Bank are cofinancing a project under their Full Mutual Reliance Framework. The arrangement allows both institutions to coordinate their efforts more closely, helping reduce duplication and speed up the delivery of development support.
Earlier this year, the World Bank approved a $50 million concessional loan for the same project and is serving as the lead lender.
Development partners say expanding digital services can improve efficiency in government processes, reduce administrative barriers and make public services easier for citizens to access.