The Government of Nepal and the Asian Development Bank (ADB) have signed a loan and grant agreement worth $285 million for the SASEC Highway Improvement and Ecosystem Restoration Project. According to a press statement issued by the Ministry of Finance on November 6, 2026 (Kartik 20, 2083 BS), the agreement includes a $285 million concessional loan and a $20 million grant from ADB. The project aims to improve critical sections of Nepal’s highway network while incorporating environmental protection and ecosystem restoration measures.
Under the project, ADB financing will support the upgrading of the Narayanghat–Hetauda section of the East-West Highway and the Mugling–Ambukhaireni section of the Prithvi Highway. These routes are important transport corridors connecting major commercial centers and facilitating the movement of passengers and goods across Nepal. The planned improvements are expected to enhance road conditions, transport efficiency, and connectivity while supporting the country’s broader infrastructure development objectives.
The agreement was signed at a ceremony organized by the Ministry of Finance. Joint Secretary Amrit Lamsal signed on behalf of the Government of Nepal, while ADB Officer-in-Charge for Nepal Arnaud Heckmann signed on behalf of the bank. During the ceremony, Finance Secretary Dr. Ghanshyam Upadhyaya emphasized the importance of constructing protective structures around road infrastructure and carrying out road expansion without damaging the environment. Heckmann highlighted the need for all stakeholders to fulfill their responsibilities to ensure the timely completion of road improvement and bridge construction works.
The signing ceremony was also attended by Finance Secretary Dr. Ghanshyam Upadhyaya and ADB Director General for South Asia Sona Shrestha, who was visiting Nepal. The agreement represents another step in Nepal’s cooperation with ADB to modernize strategic transport corridors and strengthen environmentally responsible infrastructure development. By combining concessional financing with grant assistance, the project is expected to contribute to safer transportation, improved highway connectivity, and more resilient road infrastructure.
