World Bank approves $50 million Digital Transformation Project

The World Bank’s Board of Executive Directors today approved $50 million in financing to boost Nepal’s digital public infrastructure and digitise public services, fundamentally changing how services are delivered to the people.
The Nepal Digital Transformation Project will invest in digital platforms including an integrated online citizen service portal and an integrated social registry; a secure government-wide data exchange; and a digital locker to manage verifiable credentials and digital wallet, according to a press note issued by the World Bank. "The project will also help digitise high-impact services including land administration with other services being added in a phased approach," it reads, adding that the project aims to boost private sector investment in the data infrastructure market by improving legal and regulatory frameworks. "To promote trust in the digital economy, the project will invest in electronic signatures, cybersecurity, and data governance."
“By investing in core digital platforms and digitalising services, this project will help deliver enhanced services to people and businesses in an inclusive and transparent manner thereby improving service delivery, public sector efficiency, and good governance,” said World Bank Division Director for Maldives, Nepal, and Sri Lanka David Sislen.
The project will be financed under a joint co-financing arrangement between the World Bank and the Asian Development Bank (ADB) under the Full Mutual Reliance Framework. The World Bank is the lead lender while the ADB will serve as the trail lender and contribute $40 million. ADB’s management is expected to present the project to their Board for consideration in March 2026.
The project will be implemented by the Ministry of Communications and Information Technology and Department of National ID and Civil Registration.

World Bank approves $95 million to support sustainable and inclusive finance

The World Bank’s Board of Executive Directors approved a $95 million operation to help expand access to finance for more than 100,000 small and medium enterprises (SMEs) and promote job-led growth in Nepal.

“This operation will strengthen Nepal’s Deposit and Credit Guarantee Fund (DCGF) to expand risk-sharing, enhance financial sustainability, and introduce new guarantee products for underserved segments such as women-led businesses,” said World Bank Country Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “By easing access to finance and reducing transaction barriers, the operation will broaden financial inclusion, support the integration of MSMEs into regional and global value chains, and foster job creation and private sector–led growth."
The Sustainable and Inclusive Finance Project (SIF) builds on reforms supported under the World Bank financed Financial Sector Stability and Finance for Growth Development Policy Credit (DPC) series, concluded in 2024, which prioritised access to finance for underserved segments as a key pillar.
Complementing these efforts, the project will invest in technology and institutional capacity of the Credit Information Bureau of Nepal (CIBN) to expand data coverage, integrate alternative data sources, and enhance data security and privacy. The International Finance Corporation has been supporting CIBN in this endeavor. The project also aligns with the Government of Nepal’s recently approved second Financial Sector Development Strategy, according to the World Bank.
“Inadequate collateral and limited credit histories have long constrained SMEs’ access to affordable finance while limiting lenders’ ability to accurately assess credit risk,” said Senior Financial Sector Specialist for South Asia Region, and Task Team Leader for the operation Sabin Raj Shrestha. "The DCGF will be strengthened by upgrading its management information system, improving claims-settlement efficiency, and transitioning to risk-based pricing and first-loss coverage."