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Asian Development Bank Approves $300M Loan for Nepal’s Kakarbhitta–Laukahi Road Connectivity Enhancement

The Asian Development Bank (ADB) has given its approval for a significant $300 loan to bolster the transport of Nepal's Kakarbhitta–Laukahi road, facilitating international trade routes, particularly to India and Bangladesh. The ADB's statement highlights that the project will involve upgrading 95 kilometers of the existing two-lane road to a four-lane dual roadway, incorporating climate and disaster-resilient design features.

Enhanced Resilience and Connectivity: The road improvement initiative will prioritize climate and disaster resilience by implementing robust design measures, including the utilization of higher thermal resistant pavements and the construction of flood-proof bridges. These measures are aimed at fortifying the road infrastructure against the adverse impacts of climate change and natural disasters. Moreover, this development will significantly improve transport connectivity, facilitating smoother trade flows between Nepal, India, and Bangladesh.

Emphasis on Road Safety: The project places considerable emphasis on enhancing road safety. Various safety measures will be implemented, such as the installation of with traffic signals, well-lit footpaths with tactile paving surfaces, overhead pedestrian crossings, raised platforms for road crossings, and adequately equipped bus stops with lighting systems. These measures will greatly contribute to ensuring safer and more secure travel along the Kakarbhitta–Laukahi road.

ADB's Commitment to Climate Change Mitigation: In addition to the loan, the ADB will a $750,000 technical assistance from its Technical Assistance Special Fund. This grant will be dedicated to developing comprehensive guidelines for climate change mitigation and adaptation in road projects. The grant will also support the creation of bidding documents, performance indicators, and a user handbook on long-term performance-based maintenance. By integrating climate change considerations into the project, the ADB to contribute to sustainable development and combat the challenges posed by climate change.

Fulfilling ADB's Vision for the Region: The ADB's support for the Kakarbhitta–Laukahi road connectivity project aligns with its vision of fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific region. By in infrastructure that enhances connectivity, resilience, and safety, the ADB is working towards eradicating extreme poverty while promoting sustainable economic and regional integration.

The approval of the $300 million loan by the ADB marks a significant in improving the transport connectivity of Nepal's Kakarbhitta–Laukahi road. This upgrade to a four-lane dual roadway, coupled with climate and disaster-resilient design features, will facilitate smoother trade routes to India and Bangladesh. Additionally, the emphasis on road safety and the integration of climate change mitigation guidelines showcase the ADB's commitment to sustainable development and its dedication to the welfare of the Asia-Pacific region.

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