The Asian Development Bank (ADB) has approved a $30 million financing package to improve climate resilience, water resources management, and livelihoods of communities in Karnali and Sudurpashchim provinces in Nepal.
“Nepal is increasingly at risk from the devastating impacts of climate change, as extreme weather events become more frequent. The Karnali and Sudurpashchim provinces are assessed to be the most vulnerable regions to climate change, largely owing to the poor communities’ low coping capacity” said ADB Environment Specialist Sumit Pokhrel. “This project will help communities in the targeted project areas to be more climate-resilient, build their capacity to preserve and manage their natural resources, and expand nature-based livelihood opportunities that will boost the local economy.”
The package comprises a $10 million concessional loan and a $20 million grant from the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.
The Climate-Resilient Landscapes and Livelihoods Project will help communities in 24 municipalities prepare catchment management plans to ensure effective water resources management and water security. The project will support the construction of small-scale drinking water systems and gravity-fed irrigation facilities. It will introduce water and soil conservation measures to protect landscapes from adverse effects of climate change. This includes the construction of soil erosion, surface runoff control, and infiltration structures; slope and stream bank stabilization; and land cover improvements such as nurseries, restoration of barren lands, and agroforestry.
ADB will provide grants to support nature-based livelihood investments such as the cultivation of medicinal and aromatic plants, non-timber forestry products, and indigenous crops. This will improve income opportunities of farmers and small and medium-sized enterprises, including women entrepreneurs. The project will also promote ecotourism in the region to diversify local communities’ income sources.
The project will build the capacity of federal, provincial and local governments to effectively plan, manage, and monitor water infrastructure, watersheds, and livelihood projects. At the local level, the project will train and inform communities on land and water preservation and conservation, and on nature-based livelihood opportunities.
ADB will administer an additional $2 million grant financed by the Community Resilience Partnership Program Trust Fund (CRPPTF) under the Community Resilience Financing Partnership Facility, which is dedicated to financing women-led small and medium enterprises. An additional $1.25 million grant from ADB’s Technical Assistance Special Fund and $500,000 from the CRPPTF is allocated for capacity building towards livelihood enhancement, ecotourism promotion, geographical indication, and independent project monitoring.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.
