The government of Nepal has decided to accept a concessional loan of $90 million (Rs 13.32 arba) from the World Bank and the Asian Development Bank (ADB). The decision was made in a cabinet meeting on April 05, 2026. The loan is to be utilized for various digital transformation projects that aim at enhancing public services with a higher level of efficiency and faster service delivery.
Both the World Bank and the ADB have already approved their loan for Nepal. It is a joint co-financing arrangement between the two running under the Full Mutual Reliance Framework. In this project, the World Bank provides a $50 million concessional loan, and the ADB provides $40 million.
Nepal accepts World Bank-Asian Development Bank loan of $90 million for digital transformation projects
The communication ministry will operate this project, also titled “The Nepal Digital Transformation Project”. According to the World Bank, the funds of its 450 million loan will be used 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.”
It further adds that the investment will help digitize high-impact services relating to land administration and others.
“By investing in core digital platforms and digitalizing 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 David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.
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Similarly, the ADB website states that the loan will be invested in Nepal’s data hosting and cybersecurity infrastructure projects. Likewise, the funds will go into developing an integrated citizen service portal, improving the national social registry, etc. Altogether, there are 11 high-impact government services that will see improvement under this ADB-World Bank initiative.
“Digital transformation is no longer optional—it is critical for improving public service delivery and supporting Nepal’s economic development,” said ADB Country Director for Nepal Arnaud Cauchois. “The reforms supported by ADB and the World Bank will make key services easier to access, reduce waiting times and administrative barriers, and enhance transparency in government processes—helping build greater trust between citizens and public institutions.”
At the same time, the cabinet also decided to implement a two-day weekly holiday on Saturday and Sunday as a mitigating measure to alleviate the fuel crisis. This decision comes into force on April 05, 2026.
