Nepal Cabinet Accepts $305 Million ADB Assistance for Road Improvement Projects
Nepal’s Cabinet has decided to accept a USD 305 million assistance package from the Asian Development Bank for road improvement projects. The decision was one of six major decisions taken at Tuesday’s Cabinet meeting, which also covered fertilizer regulation, land subdivision deadlines, Nepal’s participation in COP31 and proposed amendments to existing laws.
-1-1600x900.webp&w=3840&q=90)
KATHMANDU, November 3: The Government of Nepal has decided to accept financial assistance worth USD 305 million from the Asian Development Bank (ADB) to support road improvement projects.
The decision was taken during a Cabinet meeting held at Singha Durbar on Tuesday. The assistance comprises a USD 285 million concessional loan and a USD 20 million grant.
The government’s decision marks an important step towards receiving and implementing the financing package for infrastructure development.
The ADB had announced approval of a larger USD 305.75 million financing package on October 9. The package supports improvements to strategic highways, road safety and wildlife conservation in Nepal.
Highway Upgrades to Improve Connectivity
The ADB-supported programme is designed to improve important sections of Nepal’s East-West Highway and Prithvi Highway.
According to the ADB, the project includes upgrading approximately 70 kilometres of the East-West Highway between Narayanghat and Hetauda from two lanes to four lanes.
It also includes improvements to the Mugling–Abukhaireni section of the Prithvi Highway, including the expansion of an 8.7-kilometre stretch.
The project is expected to improve transport connectivity, reduce travel difficulties and strengthen road safety along important national corridors.
It also includes measures to protect wildlife habitats and improve ecological connectivity, particularly around the Barandabhar wildlife corridor.
The government’s decision to accept the assistance is separate from the ADB's earlier approval of the financing package. Project implementation will depend on the required agreements and subsequent procedures.
Fertilizer Regulation to Include New Products
The Cabinet also approved the Fertilizer Control Order, 2026, and decided to include nano-fertilizers, biostimulants and commercially produced biological and organic fertilizers in the list of essential substances.
The decision is expected to bring these products within a clearer regulatory framework.
The move comes as agricultural practices increasingly explore new products and technologies to improve soil management and crop production.
Effective regulation will be important to ensure that fertilizers and related agricultural products meet appropriate quality and safety standards.
Nepal to Participate in COP31 in Türkiye
The Cabinet approved the participation of a high-level Nepali delegation in the 31st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31).
The international climate conference is scheduled to take place in Antalya, Türkiye, from November 9 to 20.
Nepal is expected to use the international platform to highlight climate-related challenges, including the effects of global warming on Himalayan glaciers, mountain ecosystems and communities vulnerable to climate disasters.
Deadline for Land Subdivision Extended
In another decision, the Cabinet agreed to extend the deadlines related to the subdivision of land subject to tenancy rights.
The extension will provide additional time for landowners and tenant farmers to submit applications and complete the required procedures for dividing such land.
The application deadline has been extended until November 2028, while the deadline for completing the subdivision process has been moved to July 15, 2029.
The decision is intended to give concerned parties more time to complete the process.
Two Ordinances Recommended to the President
The Cabinet also decided to recommend two ordinances to the President for issuance.
One proposed ordinance seeks to amend the Press Council Act, 2048 BS, while the other concerns amendments to certain existing laws related to culture, tourism and civil aviation.
The recommendations do not mean that the ordinances have already been issued. Further constitutional procedures are required.
The Cabinet also approved additional government investment in Nepal Reinsurance Company Limited through the purchase of additional right shares.
Six Decisions Cover Infrastructure, Agriculture and Governance
Tuesday’s Cabinet decisions covered several areas of government policy, including infrastructure financing, agricultural regulation, international climate engagement, land administration and legal amendments.
The USD 305 million ADB assistance package is among the major financial decisions, with the proposed highway improvements expected to support national connectivity and transport efficiency.
However, the impact of the package will ultimately depend on how effectively the projects are implemented, how transparently public resources are managed, and whether the planned improvements are completed on schedule.