New Delhi: The Asian Development Bank (ADB) has approved $125 million in financing to help build a network of deep tube wells and a dedicated electricity distribution network in Nepal’s Madhesh Province, according to a statement.
The financing package includes a $110 million concessional loan and a $15 million grant from the Asian Development Fund.
The project will benefit farmers in Rautahat and Sarlahi districts, providing them with year-round access to irrigation water. It will also help them shift to climate-resilient agricultural practices and adopt high-value and high-yielding crops.
“Farmers’ willingness to pay for the true cost of groundwater irrigation services is essential for ensuring sustainable resources and asset management,” said ADB Water Resources Specialist Marie L’Hostis in the statement.
“This ADB support will introduce a new approach using high-level technology and prepaid smartcards that will allow farmers to benefit from reliable and flexible access to irrigation water at their fields, enabling them to produce crops that meet market demands and increase their incomes,” the ADB press release added.
The Mechanized Irrigation Innovation Project will construct around 900 kilometers of underground pressure pipe distribution networks to bring water from pump houses to farms.
ADB will also provide an additional $750,000 grant to establish and build staff capacity of the public-private partnership unit in Nepal’s Department of Water Resources and Irrigation.