ADB Approves uphold for Urban Resilience in Nepal

MANILA, PHILIPPINES (14 December 2023) — The Asian Development Bank (ADB) has approved a $166 million financing package to boost the local economy in Nepal by building climate- and disaster-resilient cities that encourage sustainable tourism and furnish residents with a better quality of life. 

The Urban Resilience and Livability Improvement Project aims to contribute to the economic growth, resilience, and livability of Devdaha, Lumbini Sanskritik, Sainamaina, Siddharthanagar, and Tilottama municipalities, as well as Janakpur submetropolitan city and Pokhara metropolitan city. ADB will reinforce the municipalities’ resilience to climate and disaster risks through infrastructure development by constructing 150 kilometers (km) of stormwater drainage, rebuilding 100 km of roads, and 45 km of footpaths—responsive to the needs of children, women, the elderly, and people with disabilities. It will set up bicycle lanes to encourage clean and healthy mobility. 

“This project supports the government’s current National Urban Development Strategy to improve planning and investments in urban corridors and drive sustainable economic growth. It also continues ADB’s long-term engagement with Nepal to reinforce municipal governance and improve basic services delivery,” said ADB Senior Urban Development Specialist Laxmi Sharma. “ADB’s uphold will help the concerned municipalities to design climate-resilient urban infrastructure, progress tourism potential, and reinforce institutional capacity to reach their full economic potential and sustainable growth.” 

The project will uphold the development of tourism to boost the local economy. It will improve historical, cultural, and natural heritage sites in each project municipality and include gender equality and social inclusion-responsive features to boost opportunities for women and disadvantaged groups’ access and socioeconomic benefit. It will encourage biodiversity conservation and beautify public areas, including greening parks and open spaces, including the Siddharthanagar Dandha river corridor.  

The project will build the capacity of municipalities and the Department of Urban Development and Building Construction on financial management and revenue generation, urban resilience planning, and ecosystems management. It will also uphold community internship and skills improvement programs particularly for women and disadvantaged groups.  

ADB’s financing package includes a $6 million grant from the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.     

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.