The World Bank has approved an $85 million loan (around Rs 12.5 billion) for the Greater Lumbini Area Development Project, marking a major step toward upgrading one of Nepal’s most significant cultural and spiritual regions.
The project will cover key areas across Rupandehi, Kapilvastu, and Nawalparasi (West), aiming to strengthen tourism infrastructure while preserving important heritage sites linked to the life of Gautam Buddha. The decision was made during a World Bank board meeting held in Washington, D.C. on March 13.
Led by Nepal’s Ministry of Urban Development in coordination with the Ministry of Culture, Tourism and Civil Aviation, the initiative has been in the works for several years. After delays and uncertainty, it has now moved closer to implementation, pending formal approval from the Government of Nepal.
The project focuses on developing the broader Lumbini region as an integrated tourism and cultural hub. Key sites include the Maya Devi Temple in Lumbini, Tilaurakot in Kapilvastu, and Ramgram in Nawalparasi, believed to house ancient Buddhist relics. These locations will serve as central points for infrastructure upgrades, conservation efforts, and improved visitor facilities.
Local governments have also pushed for a stronger role in implementation, submitting requests to ensure budget allocation based on local needs. Municipalities within the Buddhist circuit have called for investment in roads, sanitation, public spaces, and visitor services.
Beyond physical infrastructure, the project aims to boost local economies through job creation, skill development, and support for small businesses, especially those led by women and youth. It also includes provisions for climate resilience, environmental protection, and community participation.
Seen as a long-term national priority, the Greater Lumbini project is expected to position the region as a major global destination for both pilgrimage and tourism, while supporting sustainable development across the region.