ADB Approves Loan for Nepal Project to Improve Road Connectivity and Trade

17 May 2023

The Asian Development Bank (ADB) approved on 17 May 2023 a project loan to support upgrading work on the East–West Highway, which is part of the South Asia Subregional Economic Cooperation (SASEC) corridor. According to Ms. Sin Wai Chong, Transport Specialist for South Asia, ADB, the project will strengthen border trade and logistics, and will improve the lives of rural communities.

The project will improve connectivity in the region, by upgrading a 95-kilometer stretch of road from Kakarbhitta to Laukahi. The road will be upgraded to a four-lane dual roadway with features designed to withstand climate change and disasters, such as thermal resistant pavements and flood-proof bridges. Various road safety measures will be implemented, including traffic signals, footpaths with lighting and tactile paving, pedestrian crossings, and bus stops.

The project also includes capacity building initiatives for the Department of Roads to enhance their expertise in climate resilience, road asset management, and road safety. Community awareness campaigns on road safety will also be conducted. Capacity development programs will be introduced to empower women and disadvantaged groups, improving their mobility and access to essential services.

To support these efforts, ADB will provide a $750,000 technical assistance grant from its Technical Assistance Special Fund. This grant will be used to develop guidelines for climate change mitigation and adaptation in road projects, as well as bidding documents, performance indicators, and a user handbook on long-term maintenance.


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