ADB Unveils $2.3 Billion Country Partnership Strategy for Nepal (2025–2029)
The Asian Development Bank (ADB) has introduced its Country Partnership Strategy (CPS) for Nepal for 2025–2029, enabling the country to mobilize approximately USD 2.3 billion over the five-year period.
Unveiled on Tuesday, the strategy outlines three key priorities:
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Private sector–led, employment-intensive, and green economic transformation,
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Inclusive and quality human capital development and public services, and
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Environmental sustainability and climate resilience.
The CPS aims to support Nepal’s inclusive, resilient, green, and employment-oriented economic growth, aligning with the goals of the country's 16th Five-Year Plan. As Nepal prepares to graduate from its current Least Developed Country (LDC) status, the CPS is expected to guide its transition toward a sustainable and inclusive growth model.
According to ADB Country Director for Nepal, Arnaud Cauchois, the strategy promotes domestic and foreign investment, improved access to quality infrastructure, skills development, export growth, and enhanced resilience to disasters and climate change. “The CPS will support Nepal’s transition to a more sustainable and inclusive growth model,” he said.
The CPS will be financed primarily through concessional ordinary capital resources (COL) and thematic grants from the Asian Development Fund 14, based on project readiness, government priorities, and national performance. Additionally, ADB will seek co-financing, green bonds, thematic bonds, and Nepali rupee-linked local currency bonds to supplement financing.
To ensure inclusivity, the strategy integrates cross-cutting themes such as digital transformation, federalism support, gender empowerment, and social justice, in line with the government’s Green, Resilient, and Inclusive Development (GRID) framework.
ADB will implement the CPS through a mix of investment projects, policy-based lending, and sector development programs focusing on institutional reforms and infrastructure development. The strategy emphasizes selectivity, integration, and synergy, especially in youth employment, climate resilience, and private sector development.
Prepared in close coordination with the World Bank Group under the 2025 Full Mutual Reliance Framework, the CPS builds on growing collaboration through joint policy dialogues, knowledge exchange, portfolio reviews, and potential co-financing, with both institutions collectively supporting over two-thirds of Nepal’s development financing.
