The project will employ a Design, Build, and Operate (DBO) modality to ensure long-term sustainability. An irrigation management company will also be established to oversee the efficient operation of groundwater irrigation systems.
By Laxmi Khanal
The Government of Nepal and the Asian Development Bank (ADB) signed a significant concessional loan and grant agreement on Wednesday, totalling USD 157 million (Rs. 21.23 billion), to implement two transformative projects: the Mechanized Irrigation Innovation Project (MIIP) and the Climate Resilient Landscapes and Livelihoods Project (CRLLP).
The agreements, signed in Kathmandu, were aimed at addressing Nepal’s critical needs for improved agricultural productivity and enhanced climate resilience.
Advanced Irrigation Technologies to Benefit Farmers
The Mechanized Irrigation Innovation Project (MIIP) received USD 125 million, comprising a USD 110 million loan and a USD 15 million grant. Finance Secretary Dr. Ram Prasad Ghimire and ADB’s Country Director for Nepal, Arnaud Cauchois, inked the agreement.
The MIIP will introduce cutting-edge irrigation technologies, including a prepaid card system, allowing farmers to access water based on their specific needs. Focused on the Rautahat and Sarlahi districts of Madhes Province, the project is expected to benefit over 121,000 farmers by ensuring year-round irrigation and boosting agricultural productivity.
Additionally, the project will employ a Design, Build, and Operate (DBO) modality to ensure long-term sustainability. An irrigation management company will also be established to oversee the efficient operation of groundwater irrigation systems.
“This project will significantly contribute to food security and agricultural innovation in the region,” said Dr. Ghimire.
Enhancing Climate Resilience in Vulnerable Regions
The Climate Resilient Landscapes and Livelihoods Project (CRLLP) secured USD 32 million in funding, with USD 22 million as a grant and USD 10 million as a loan. Joint Secretary Dhani Ram Sharma and ADB’s Arnaud Cauchois signed the agreement on behalf of their respective organizations.
Focused on the Karnali and Sudurpashchim provinces – regions highly vulnerable to climate change – the CRLLP will enhance water security, promote agroforestry, and empower communities through sustainable management of water resources and forests. The project aims to mitigate the impacts of climate change by fostering nature-based solutions and promoting livelihoods that rely on sustainable practices.
“This project addresses critical challenges posed by water insecurity and climate vulnerabilities,” Cauchois stated, emphasizing ADB’s continued commitment to supporting Nepal’s sustainable development goals.
High Hopes for Impactful Outcomes
During the signing ceremony, Finance Secretary Dr. Ghimire expressed gratitude to ADB for its enduring partnership. He emphasised the projects’ importance in advancing irrigation infrastructure, strengthening climate resilience, and uplifting rural livelihoods.
“These projects are pivotal in ensuring food security, addressing water challenges, and building resilience in the face of climate change,” Dr. Ghimire remarked, urging implementing agencies to ensure timely and effective project execution.
ADB’s Cauchois highlighted the projects’ potential to bolster Nepal’s economy while addressing key challenges in agriculture and climate adaptation.
The agreements mark a crucial milestone in Nepal’s journey toward sustainable development, signalling a commitment to innovation and resilience in the agricultural and climate sectors. With these projects, Nepal aims to pave the way for a more secure and sustainable future for its rural communities.
