Nepal and ADB Sign Loan Agreement for Digital Transformation Project

Kathmandu. A loan agreement has been signed between the Government of Nepal and the Asian Development Bank (ADB) for the implementation of the Nepal Digital Transformation Project. ADB stated that the agreement was signed on Monday during a program organized at the Ministry of Finance.

This project, to be operated with joint co-financing from the World Bank and ADB, prioritizes the development of digital infrastructure along with environmental and social safeguards. As per the agreement, the project must fully comply with the Environmental and Social Commitment Plan.

Considering the potential increase in electronic waste during digitalization, the project has agreed to prepare and implement an e-waste management plan. The agreement mandates the safe management of electronic, hazardous, and other waste generated from the project activities.

The agreement mentions that the occupational health and safety of workers involved in the project will be guaranteed. Child labor and forced labor are completely prohibited. A special action plan will be implemented to prevent sexual exploitation and abuse, and gender-based violence in the workplace.

This project will be operated under the leadership of the Ministry of Communications and Information Technology. It will directly involve the Department of Information Technology, the National Cyber Security Center, and the Department of National Identity Card and Civil Registration under the Ministry of Home Affairs.

The agreement stipulates the formation of a Project Management Unit with environmental and social experts within the Ministry of Communications and Project Implementation Units in other departments within 60 days of the agreement coming into effect.

The government believes that the agreement will ensure the expansion of Nepal's national identity card system, strengthening of cyber security, increased access to digital services, and the practice of sustainable and secure development.