Asian Development Bank

Pokhara Metropolitan City Mayor Dhanraj Acharya has proposed a plan to revitalize the Phirke River, drawing inspiration from South Korea's successful Cheonggyecheon River restoration project. The initiative, in partnership with the Asian Development Bank, aims to transform the 8-kilometer Phirke River into an organized public space with footpaths and bicycle lanes, similar to the urban renewal project in Seoul.

A 126 MW Lower Seti Hydropower Project is slated for construction in Tanahun, with an estimated investment of USD 227 million from the Asian Development Bank. The project's financing will comprise 30 percent equity and 70 percent loan. Land acquisition for the powerhouse and staff quarters has commenced.

Nepal's economic growth forecasts for the fiscal year 2025/26 are showing significant divergence, with the World Bank predicting 2.3%, the Asian Development Bank 2.7%, and the National Statistics Office 3.85%. Meanwhile, the Chinese app TikTok is in a tax dispute with Nepalese authorities over unpaid Value Added Tax (VAT) for the current fiscal year, despite having paid VAT in previous years. Development Finance Institutions (DFIs) have collectively invested $1.09 billion in Nepal's private sector between 2014 and 2023, with a significant portion directed towards hydropower and commercial banks like NMB Bank.

Nepal has initiated a new $90 million digital transformation project, co-financed by the World Bank and Asian Development Bank, aiming to streamline public services for 7 million citizens within five years. This initiative follows the cancellation of a similar $140 million World Bank project in 2024 due to zero disbursement, highlighting a history of underperformance in the country's digital development sector.

The Power Transmission and Distribution Strengthening System Project in Madhesh Province, supported by Norway, has formally concluded, successfully expanding regional power networks and providing reliable grid access. The initiative also supported over 400 local entrepreneurs, many of whom are women, with new livelihood opportunities and introduced clean cooking alternatives.

China's Ambassador to Nepal, Zhang Maoming, attended a policy dialogue in Kathmandu focused on integrating Artificial Intelligence (AI) into higher education. He stated that South Asia has significant potential to become a hub for AI-enabled higher education and expressed a desire to deepen cooperation with Nepal and other South Asian nations in this field. The dialogue, organized by Tribhuvan University with support from the Asian Development Bank and UNESCO, brought together experts from SAARC countries to discuss responsible AI use.

Experts and education leaders from South Asia have called for the responsible and ethical integration of artificial intelligence (AI) in higher education, advocating for clear government policies to prevent misuse and maximize societal benefits. This discussion occurred during a policy dialogue in Kathmandu, organized by Tribhuvan University with support from the Asian Development Bank and UNESCO. The event highlighted AI's transformative role in education and the need for institutions and governments to adapt.