KATHMANDU: Ministry of Physical Planning and Works (MoPPW) is planning to expand boundaries and improve lives of Biratnagar, Birgunj and Butwal towns.

The Asian Development Bank (ADB) is supporting the government plan. "MoPPW is expediting the Urban Environment Improvement Project (UEIP) after ADB give it a green single for soft loan," said Deep Basnet, secretary at the ministry.

The total budget of the UEIP is estimated at around $92 million -- out of which ADB will support $60 million and government will inject $32 million. "The project is agreed conceptually and its financial analysis is going on," he added.

"The project will develop Biratnagar, Birgunj and Butwal as regional cities with absorbing capacity of over 5,00,000 people," Basnet said adding that basic infrastructure like road, water and sanitation, electricity and telecommunication will be developed and improved under the project.

"The cities will have adequate green space, park and play grounds."

"A ring-road will be constructed in every city connecting sub-urban areas," he added.

Development of these cities is targeted to reduce the migration pressure to the Kathmandu valley. Biratnagar, Birgunj and Butwal are major towns in eastern, central and mid-western Nepal with over 1,00,000 population.

Similarly, the ministry is also developing four-five places as emerging cities. World Bank (WB) is supporting the project through its soft loan. "We have received commitment from the WB," he said adding that Department of Road (DoR) and Department of Building (DoB) are working on to select potential areas to develop them as towns.

As per Ministry of Physical Planning and Works plan, towns for new emerging cities will be selected in the hill districts.

Moreover, the ministry is also exploring 18 to 20 small towns in hilly districts to develop them as future cities. "It is a long-term plan and will go hand in hand with mid-hill road project," said Basnet.

The Ministry of Physical Planning and Works is selecting small towns on the route to mid-hill road on the basis of regional balance, economic potentiality and having basic infrastructures.