Kathmandu. The Government of Nepal and Asian Development Bank (ADB) today signed a concessional loan and grant agreement amounting to 157 million USD (equivalent to 21.23 billion NPR) for the implementation of the Mechanized Irrigation Innovation Project (MIIP) and the Climate Resilient Landscapes and Livelihoods Project (CRLLP).
The grant agreement amounting to 15 million USD (equivalent to 2 billion NPR) and Loan Agreement amounting to USD 110 million (equivalent to 14.88 billion NPR) for the implementation of MIIP was signed by Dr. Ram Prasad Ghimire, Finance Secretary and Mr. Arnaud Cauchois, Country Director of the Nepal Resident Mission, ADB, on behalf of the Government of Nepal and ADB respectively.
The MIIP will introduce advanced irrigation technologies, including a prepaid card system allowing farmers to access water based on their field’s needs. The project will be implemented in the Rautahat and Sarlahi districts of Madhesh Province, benefiting over 121,000 farmers. The primary objectives of the project are to improve agricultural productivity, ensure year-round irrigation, and contribute to food security. Additionally, this project will employ the Design, Build, and Operate (DBO) modality and establish an irrigation management company for the long-term sustainability of groundwater irrigation systems in the region.
Similarly, the grant agreement amounting to 22 million USD (equivalent to 2.97 billion NPR) and Loan Agreement amounting to 10 million USD (equivalent to 1.35 billion NPR) for the implementation CLRRP was signed by Mr. Dhani Ram Sharma, Joint Secretary, Ministry of Finance and Mr. Arnaud Cauchois, Country Director of the Nepal Resident Mission, ADB, on behalf of the Government of Nepal and ADB respectively.
The CRLLP focuses on enhancing the climate resilience of rural communities in the Karnali and Sudurpashchim provinces, which are highly vulnerable to the impacts of climate change. This project will address water insecurity, promote nature-based livelihoods, and empower local communities through the sustainable management of water resources. The project aims to empower communities to adapt to climate challenges by focusing on sustainable water management, agroforestry, silviculture, and forest management. This project will play a critical role in improving water security and addressing the region’s vulnerability to climate-induced challenges.
Likewise, the project agreement for CRLLP was signed by Mr. Badri Raj Dhungana, Joint Secretary, Ministry of Forest and Environment, Mr. Deergha Narayan Koirala, Province Secretary, Ministry of Industry, Tourism, Forest and Environment, Karnali Province and Mr. Pramod Bhattarai, Province Secretary, Ministry of Industry Tourism, Forest and Environment, Sudurpaschim Province along with Mr. Arnaud Cauchois, representing the provinces and ADB respectively.
In the signing ceremony, Mr. Dhani Ram Sharma, Joint Secretary, Ministry of Finance provided an overview of the two projects, highlighting their potential impact on Nepal’s agricultural and climate resilience sectors.
Mr. Arnaud Cauchois, Country Director of ADB, underscored the key features of these projects, the financing modalities, and their importance to Nepal’s economy. Country Director Cauchois reaffirmed ADB’s commitment to supporting Nepal’s development goals, particularly in areas of climate adaptation, agricultural productivity, and water security.
Dr. Ram Prasad Ghimire, Finance Secretary, expressed his gratitude to ADB for its continued support and partnership. Dr. Ghimire emphasized that these projects would not only enhance irrigation infrastructure but also foster climate resilience among some of Nepal’s most vulnerable communities. Dr. Ghimire urged the implementing agencies to ensure timely and effective implementation of the projects, aiming for a positive and lasting impact on rural livelihoods. He highlighted that the introduction of advanced irrigation technologies and sustainable water resource management would be critical to ensuring food security and improving resilience in the face of climate change.
The signing of these agreements marks a significant milestone in Nepal’s efforts to enhance agricultural productivity, improve water security, and build climate resilience. Both the MIIP and CRLLP align with Nepal’s broader goal of achieving sustainable development and adapting to the challenges posed by climate change.
