The government and Asian Development Bank (ADB) today signed a concessional loan and grant agreement of $157 million (approximately Rs 21.23 billion), at the Finance Ministry, for the implementation of the Mechanised Irrigation Innovation Project (MIIP) and the Climate Resilient Landscapes and Livelihoods Project (CRLLP).
The grant agreement amounting to $15 million and loan agreement amounting to $110 million for the implementation of MIIP was signed by finance secretary Dr Ram Prasad Ghimire and Country Director of the Nepal Resident Mission ADB Arnaud Cauchois, on the behalf of the government and ADB, respectively, according to the Finance Ministry.
According to the agreement, the MIIP will introduce advanced irrigation technologies, including a prepaid card system allowing framers to access water based on their field's need. "The project will be enforced in the Rautahat and Sarlahi districts of Madhes Province, benefitting 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 adopt Design, Build and Operate (DBO) modality and establish an irrigation management company for the long-term sustainability of groundwater irrigation system in the region.
Similarly, the grant amounting to $22 million and loan agreement amounting to $10 million for the implementation of CRLLP was also signed by joint-secretary at the Finance Ministry Dhani Ram Sharma and Country Director of Nepal Resident Mission, ADB Arnaud Cauchois, on the occasion.
The CRLLP stresses enhancement of climate resilient rural communities in the Karnali and Sudurpaschim provinces, which are highly vulnerable to the impacts of climate change, a press note issued by the Finance Ministry reads. "The project is aimed at addressing water insecurity, promoting nature-based livelihoods and empowering local communities through the sustainable management of water resources." The project further stresses empowerment of communities to adapt to climate challenges by fostering sustainable water management, agroforestry, silviculture and forest management.
The project will also play a crucial role in improving water security by addressing the region's vulnerability to climate-induced challenges, it claims.
After the signing of the agreement, finance secretary Ghimire expressed his gratitude to ADB for its continued support and partnership. He emphasised that these projects would not only enhance irrigation infrastructure but also spur climate resilience among some of Nepal's most vulnerable communities.
Similarly, Country Director of ADB Cauchois, on the occasion, underlined the key features of these projects, the financing modalities and their importance to Nepal's economy, reaffirming ADB's commitment to supporting Nepal's development goals—particularly in the areas of climate adaptation, agricultural productivity and water security.
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