ADB Approves $125M Package for Sustainable Irrigation Solutions in Nepal

The Mechanized Irrigation Innovation Project will establish a comprehensive network of deep tube wells, complete with pump houses and a dedicated electricity distribution system.

The Asian Development Bank (ADB) has approved a substantial financing package of $125 million aimed at enhancing year-round access to irrigation water for rural communities in the Rautahat and Sarlahi districts of Madhesh Province, Nepal. This funding includes a $110 million concessional loan and a $15 million grant from the Asian Development Fund, designed to support the poorest and most vulnerable developing member countries.

“This initiative is pivotal for ensuring sustainable resource management,” said ADB Water Resources Specialist Marie L’Hostis. “By introducing advanced technology and a prepaid smart card system, we aim to provide farmers with reliable access to irrigation water, which will enable them to cultivate crops that align with market demands and, consequently, enhance their incomes.”

The Mechanized Irrigation Innovation Project will establish a comprehensive network of deep tube wells, complete with pump houses and a dedicated electricity distribution system. The project will construct approximately 900 kilometers of underground pressure pipe distribution networks to efficiently deliver irrigation water from the pump houses directly to farms.

This initiative not only addresses immediate irrigation needs but also focuses on promoting climate-resilient agricultural practices among farmers in the region. Farmers will be encouraged to diversify their crop production by introducing high-value and high-yielding varieties, implementing more efficient irrigation methods like micro-irrigation, and strengthening their value chains and marketing linkages. Additionally, ADB will set up facilities to provide subsidized farm machinery to smallholder and marginalized farmers, further enhancing their agricultural capabilities.

To bolster these efforts, ADB will also provide an additional grant of $750,000 from its Technical Assistance Special Fund. This funding will aid in establishing and building the capacity of a public-private partnership unit within the Department of Water Resources and Irrigation, as well as offer expert guidance on groundwater management contracts.

Through this multifaceted approach, the ADB aims to empower farmers, improve agricultural productivity, and promote sustainable practices that can withstand the impacts of climate change, ultimately contributing to the economic development of rural communities in Nepal.