ADB Approves $305.75 Million Financing for Highway Upgrades and Wildlife Protection in Nepal

KATHMANDU, Nepal — The Asian Development Bank (ADB) announced on 9 October 2026 that it has approved $305.75 million in financing to upgrade strategic sections of Nepal’s East–West Highway and Prithvi Highway, with the aim of improving connectivity, safety, disaster resilience, and wildlife habitat 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 (ADF) regional cooperation and integration thematic window, and $750,000 in technical assistance from the Technical Assistance Special Fund.

Under the SASEC Highway Improvement and Ecosystem Restoration Project, approximately 70 kilometers of the East–West Highway between Narayanghat and Hetauda will be rehabilitated and expanded from two to four lanes. The project includes the construction of an elevated highway section across the Barandabhar wildlife corridor to facilitate animal movement between protected areas in the Terai Arc Landscape and reduce collisions between vehicles and wildlife.

Additionally, the initiative will fund the expansion of the 8.7-kilometer Mugling–Abukhaireni section of the Prithvi Highway from two to four lanes, which includes building new road sections and bridges along the route connecting Kathmandu and Pokhara.

According to the ADB, the grant component will finance biodiversity conservation initiatives, sustainable tourism investments in the Chitwan area, road safety measures, sustainable transport planning capacity, and training programs aimed at providing livelihood opportunities for women.

The project plans to incorporate engineering designs intended to mitigate risks from landslides and floods, such as slope stabilization, enhanced drainage systems, reinforced embankments, and resilient bridges.

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