ADB Approves $305.75 Million to Upgrade Nepal Highways and Protect Wildlife
ADB approves $305.75 million to widen Nepal highways and build wildlife crossings, including an elevated section over the Barandabhar corridor.
The story in focus
The Asian Development Bank approved $305.75 million to modernize sections of Nepal's East–West and Prithvi highways, including an elevated highway across the Barandabhar wildlife corridor, with financing for road safety and conservation measures.
- ADB approved a $285 million loan, a $20 million grant, and $750,000 in technical assistance.
- The project will widen about 70 kilometers of the East–West Highway between Narayanghat and Hetauda from two to four lanes.
- An elevated highway section will cross the Barandabhar wildlife corridor to restore animal movement routes.
Financing and project scope
The Asian Development Bank has approved $305.75 million in financing for the SASEC Highway Improvement and Ecosystem Restoration Project in Nepal. The package consists of 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 will rehabilitate approximately 70 kilometers of the East–West Highway between Narayanghat and Hetauda, expanding the road from two to four lanes. It will also support expansion of the remaining 8.7-kilometer Mugling–Abukhaireni section of the Prithvi Highway to four lanes, including new road sections and bridges.
Wildlife and resilience measures
An elevated highway section will cross the Barandabhar wildlife corridor. ADB says this will restore critical wildlife movement routes between protected ecosystems in the Terai Arc Landscape and reduce vehicle-wildlife collisions.
The grant will support biodiversity conservation and wildlife connectivity infrastructure, as well as sustainable tourism investments in the Chitwan area. The project also includes resilient engineering measures to reduce risks from floods and landslides, such as improved drainage, strengthened embankments, slope stabilization, and resilient bridge designs.
People and regional integration
ADB Country Director for Nepal Arnaud Cauchois said the project would revitalize an important transport corridor, improving connectivity for people, businesses, and tourism while helping restore wildlife corridors.
The project is aligned with Nepal's development priorities to improve national and regional connectivity and facilitate trade under the SASEC program. It also supports ADB's country partnership strategy for Nepal, 2025–2029.
What does the ADB financing include for wildlife conservation?
A $20 million grant will support biodiversity conservation, wildlife connectivity infrastructure, and sustainable tourism investments in the Chitwan area. An elevated highway section will cross the Barandabhar wildlife corridor to restore animal movement routes.
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