KATHMANDU, JUNE 19 The Asian Development Bank (ADB) has approved a $115 million concessional loan to improve water supply, sanitation services and urban resilience in rapidly growing municipalities of Nepal. The project under the Integrated Water Supply and Sewerage Management (Sector) Project is expected to directly benefit more than 850,000 people across 13 municipalities. According to ADB, rapid urbanization in Nepal has increased pressure on urban services, resulting in unreliable water supply and inadequate sanitation in many areas. 'Rapid urbanization in Nepal is placing increasing pressure on the delivery of crucial urban services, leaving many communities with unreliable water supply and limited sanitation access,' said ADB Country Director for Nepal Arnaud Cauchois. 'This project will expand access to safe and reliable water and sanitation services, strengthen resilience to natural hazards and disaster risks, and support healthier, more livable, and sustainable cities while promoting economic opportunities and inclusive growth.' The project will expand water supply infrastructure through construction of around 64 tube wells, treatment facilities with a combined capacity of about 60 million litres per day, and around 2,125 km of distribution networks. Around 72,000 households, including vulnerable and women-headed households, are expected to receive piped water connections. Similarly, sanitation systems will be upgraded and expanded through sewerage and drainage networks, wastewater treatment plants, and fecal sludge treatment facilities, benefiting more than 120,000 properties. The project also includes climate adaptation and mitigation measures supported by $75.27 million in dedicated funding and is expected to reduce greenhouse gas emissions by over 22,000 tons of carbon dioxide equivalent annually. It will further strengthen municipal capacity in asset management, financial sustainability, digital systems, and public awareness on hygiene and disaster risk reduction. The initiative aligns with Nepal's Sixteenth Plan and ADB's country partnership strategy for Nepal. It will be implemented by the Ministry of Infrastructure Development with support from the Department of Water Supply and Sewerage Management and participating municipalities. The total project cost stands at $143.8 million, including $28.8 million in government counterpart funding, and is scheduled for completion by June 2032.