Asian Development Bank has agreed to provide 23.5 million USD (approx. Rs. 2.32billion) grant assistance to the Government of Nepal for the execution of the project of Building Climate Resilience of Watershed in Mountain Eco-Regions in Nepal.


The grant assistance will be implemented by Ministry of Forest and Soil Conservation. For this purpose, Department of Soil Conservation and Watershed Management will be the Executing Agency. Project Management Unit (PMU) will handle the project implementation which will be based in Dadeldhura. Project will be implemented in 6 districts of Far Western development Region of Nepal namely Achham, Baitadi, Bajhang, Bajura, Dadeldhura and Doti.


NDF will also provide technical assistance of equivalent to USD 4.6 million. Likewise, approx. 1.9 million USD will be borne by GON as a project support cost.


It is expected that by executing this project, the climate resilience in Nepal's mountain communities will be improved. The outcome of the project is to ensure that the selected communities which are vulnerable to climate change have access to more reliable water resources. About 45,000 households are expected to be benefitted from improved water availability during the dry seasons to support domestic and agricultural uses. The spring or surface water sources are expected to become more reliable. The project will have four outputs: First, participating communities have improved catchment management and improved water storage infrastructure; second, communities and government manage water and land in an integrated and inclusive manner within watersheds; third, government adopts knowledge-based approaches for integrated water and land management system and fourth, project management support. The duration of the project is 6 years started from January 2014.


Mr. Madhu Kumar Marasini, Joint Secretary, International Economic Cooperation Coordination Division of the Ministry of Finance and Mr. Kenichi Yokoyama, Country Director of Nepal Residence Mission, ADB signed the grant assistance agreement today in Ministry of Finance on behalf of Government of Nepal and Asian Development respectively.


The Government of Nepal has expressed its sincere appreciation to the Bank for this assistance and for their continued support in the socio-economic development of Nepal.


Ministry of Finance


Singh Durbar, Kathmandu


20 January 2014

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