The Asian Development Bank (ADB) has approved a $100 million concessional loan from ADB’s regular capital resources for additional financing of the ongoing Rural Connectivity Improvement Project, which is modernizing rural roads and improving access for rural communities to markets in Nepal.
“As a landlocked country, upgrading and connecting rural roads to the main road networks is essential for improving rural living conditions and economic growth in Nepal,” said Andrew Brubaker, Senior Rural Development Specialist for Asia. ADB Southern.
“This project is helping to improve transport efficiency in rural areas and plays a catalytic role for the transformation of rural areas.”
The ongoing project, approved in December 2017, has been improving rural roads to boost the development of agriculture and agribusiness. It is improving road access for some 7.5 million people in 16 districts in 5 states that are highly dependent on agriculture.
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The additional funding will upgrade 324 kilometers of provincial highways to the same all-weather standards and safety features used in all 5 provinces of the ongoing project.
It will also support the country’s transition to federalism by shifting project execution responsibilities to the provinces and strengthening the technical capacity of the local infrastructure department, provincial governments and infrastructure agencies in selected districts. Capacity building is expected to prepare local authorities to provide decentralized road management services.
ADB will provide an additional $1 million technical assistance grant from its Special Technical Assistance Fund to support project implementation and institutional strengthening.
