ADB Approves $30M Package for Climate Resilience and Livelihood Development in Nepal

The project will build the capacity of federal, provincial, and local governments in managing water infrastructure, watersheds, and livelihood projects.

The Asian Development Bank (ADB) has approved a $30 million financing package aimed at improving climate resilience, water resources management, and livelihoods in Nepal’s Karnali and Sudurpashchim provinces. These regions, among the most vulnerable to climate change in the country, are home to poor communities with low coping capacities.

ADB Environment Specialist Sumit Pokhrel emphasized the urgency of the initiative: “Nepal is increasingly at risk from the devastating impacts of climate change. This project will help these communities become more resilient, preserve their natural resources, and expand livelihood opportunities to boost the local economy.”

The package includes a $10 million concessional loan and a $20 million grant from the Asian Development Fund. The Climate-Resilient Landscapes and Livelihoods Project will help 24 municipalities develop catchment management plans to secure water resources. It will fund the construction of small-scale drinking water systems and irrigation facilities while introducing measures to conserve soil and water, such as erosion control and slope stabilization.

Additionally, ADB will provide grants to support nature-based livelihoods like the cultivation of medicinal plants, non-timber forest products, and indigenous crops, particularly benefiting farmers and women entrepreneurs. The project also promotes ecotourism to diversify income sources for local communities.

The project will build the capacity of federal, provincial, and local governments in managing water infrastructure, watersheds, and livelihood projects. Training will be provided to local communities on land and water preservation and nature-based livelihood options.

The ADB will also administer a $2 million grant from the Community Resilience Partnership Program Trust Fund to finance women-led small and medium enterprises. Additional funding includes $1.25 million for capacity building and ecotourism promotion.

This initiative aligns with ADB’s goal of fostering inclusive and sustainable development in its member countries.