The Asian Development Bank (ADB) has approved a concessional loan worth $115 million to improve sanitation, hygiene and institutional capacity in rapidly developing municipalities in Nepal. The Integrated Water and Sanitation Management Project, launched in partnership with the Government of Nepal by 2025, is expected to directly benefit 850,000 people in 13 municipalities. The rapid urbanization in Nepal is putting pressure on basic services, leaving many communities without reliable access to water and sanitation, said Arno Koshwa, ADB's Resident Director for Nepal. "This project will expand access to such basic services, as well as support natural disaster and disaster risk reduction, health care, and a livable environment," he said. "It will promote sustainable urban planning, thereby supporting economic opportunity and inclusive development."

Under this project, 64 tubewells, water treatment plants with a daily capacity of 60 million liters, and a water distribution network of about 2,125 kilometers will be constructed. Through this, 72,000 households will be connected to drinking water taps, the statement said. It is planned to give priority to poor and female-headed households. 

ADB has stated that more than $75.2 million has been allocated for climate change adaptation and mitigation.  This is estimated to reduce carbon emissions by more than 22,000 tons annually. 

The total cost of the project is $143.8 million.  The government is said to contribute $28.8 million to this.