By Abdullahi Lukman
The Asian Development Bank (ADB) has approved $305.75 million in financing to upgrade key sections of Nepal’s East–West and Prithvi highways, aiming to improve road safety, regional trade, climate resilience and wildlife conservation.
The financing package comprises a $285 million loan from ADB’s ordinary capital resources, a $20 million grant from the Asian Development Fund’s regional cooperation and integration thematic window, and $750,000 in technical assistance from ADB’s Technical Assistance Special Fund.
The project, known as the South Asia Subregional Economic Cooperation (SASEC) Highway Improvement and Ecosystem Restoration Project, will rehabilitate approximately 70 kilometres of the East–West Highway between Narayanghat and Hetauda, expanding the road from two to four lanes.
It will also include an elevated highway section across the Barandabhar wildlife corridor to preserve animal movement routes between protected ecosystems in the Terai Arc Landscape and reduce collisions between vehicles and wildlife.
ADB Country Director for Nepal Arnaud Cauchois said the investment would strengthen transport links for communities, businesses and tourists while supporting biodiversity conservation and sustainable economic growth.
On the Prithvi Highway, the project will expand the remaining 8.7-kilometre section between Mugling and Abukhaireni to four lanes, including new road sections and bridges.
The improvements are expected to make travel safer and more efficient along the major route connecting Kathmandu with Pokhara.
The $20 million grant will support biodiversity protection, wildlife connectivity infrastructure and sustainable tourism development in the Chitwan area. It will also fund road safety initiatives, training to expand livelihood opportunities for women and measures to strengthen institutional capacity in sustainable transport planning.
The project will incorporate engineering measures to protect roads and bridges against floods, landslides and other climate-related hazards. Planned interventions include improved drainage, reinforced embankments, slope stabilisation and more resilient bridge designs.
According to ADB, the upgrades are intended to maintain reliable transport connections while reducing the risks posed by increasingly severe natural hazards.
The investment aligns with Nepal’s development priorities of improving domestic and regional connectivity, facilitating trade under the SASEC programme and expanding resilient infrastructure. It also supports ADB’s Nepal Country Partnership Strategy for 2025–2029, which prioritises sustainable economic infrastructure and regional integration.
ADB, established in 1966, is a multilateral development bank supporting sustainable and inclusive economic growth across Asia and the Pacific. The institution is owned by 69 members, including 50 from the region.
