For irrigation system improvement in Nepal, Kuwait Fund for Arab Economic Development has provided 1 billion 68 million rupees concessional loan and detailed design report (DDR) of 15 sub-projects including 8 of Koshi has been approved.

Kuwait Fund has been supporting Nepal in various development projects since 1977. In February 2076, a bilateral agreement was signed for loan assistance. There is a plan to improve and expand the irrigation system in 15 districts of central and eastern Nepal under the irrigation system improvement project.

According to the Ministry of Water, Irrigation and Energy of Koshi Province, the federal government has transferred the loan amount taken through Kuwait Fund for 8 sub-projects of Koshi Province. "The federal government took a loan, it was given as a subsidy to Koshi for irrigation improvement," said the secretary of the ministry, Pradeep Vantawa, "The interest of the loan is paid by the union, we just have to implement the plan."

According to him, the detailed design has been completed and the plan evaluation is being done. Secretary Vantwa said that the contract will be signed soon.  

Through this fund, work is being done in Ramechhap, Makwanpur, Kathmandu, Kavre, Lalitpur, Dhading and other districts. "The government has set a goal to increase agricultural production by expanding access to irrigation in the coming years through a combination of Kuwait Fund support and domestic resources," Secretary Vantwa said. 

This irrigation project will build 250 km long canals across the country . From this  Farmers in rural areas will be able to take advantage of irrigation in their fields easily. Besides, 20 dams and 30 water irrigation structures (intakes) will also be built. The

project will also create 2,000 small reservoirs (Pokhri). These reservoirs will collect rainwater and help in irrigation even in dry season . It is expected to help farmers to cultivate throughout the year even during drought.