Asian Development Bank (ADB) President Masato Kanda met Prime Minister Balendra Shah on Tuesday.

The two discussed ways to further strengthen the six-decade development partnership between Nepal and the ADB and reaffirmed their commitment to continued cooperation,

According to Deepa Dahal, the prime minister’s press and research adviser, the half-hour meeting saw Shah express confidence that Nepal could achieve a new phase of development through good governance and greater transparency.

The two sides also held discussions on promoting hydropower and tourism as key pillars of Nepal’s economy, as well as cooperation in digitalisation and tourism road infrastructure.

During the meeting, Kanda reaffirmed ADB’s commitment to expanding its development assistance to Nepal, saying the bank would remain a long-term partner in supporting the country’s economic development and prosperity.

He also highlighted Nepal’s strong economic potential, praised its strong public mandate and young leadership, and reiterated that ADB would continue to stand by Nepal’s efforts to achieve sustained development, according to the prime minister’s secretariat.

Prime Minister Shah, who had avoided one-on-one meetings with foreign officials, held his first such meeting with Kanda.

The meeting comes as ADB and Nepal mark 60 years of partnership and deepen support for the country’s economic transformation, job creation, and investment, the ADB said in a statement.

“Nepal is at a defining moment, with an opportunity to build a more dynamic and resilient economy,” said Kanda. “ADB is stepping up as Nepal’s largest multilateral development partner, and our support is expected to reach $2.4 billion by 2029. Our focus is on results for people: more jobs, stronger businesses, and better livelihoods for communities across Nepal.”

During his visit, ADB signed two loan agreements totaling $165 million as part of its annual commitment. A $115 million project will bring reliable, safely managed water and sanitation services to more than 850,000 people, while a $50 million policy-based loan will modernise the systems that move goods across Nepal’s borders, helping businesses reduce costs, improve efficiency, and enhance competitiveness through digitalisation and streamlined procedures.

Kanda also toured ADB-financed projects to see first-hand the impact of ADB’s support. He virtually inaugurated two substations which will help strengthen the electricity supply in Kathmandu, together with Minister of Energy, Water Resources and Irrigation Biraj Bhakta Shrestha and Norway’s Ambassador Dagny Mjøs.

With Minister of Education and Sports Sasmit Pokharel, Kanda visited a school rebuilt after the 2015 earthquake and now equipped with modern science and technology facilities, part of ADB’s continued investment in disaster risk management and human capital. New initiatives, including pilots on artificial intelligence learning, aim to equip teachers and students with skills for a changing labour market.

In his meeting with Finance Minister Swarnim Wagle, discussions focused on Nepal’s reform agenda, including reforms of the business climate, investment mobilisation, and ADB’s support for the government’s growth and resilience priorities.

Kanda met with key private sector leaders to exchange views on opportunities and constraints affecting investment, private sector development, and job creation in Nepal.

Looking ahead, ADB said it plans to scale up its support, with annual lending expected to reach up to $660 million this year and $2.4 billion under ADB’s Country Partnership Strategy for Nepal 2025–2029. This support will prioritise employment creation, private sector development, sustainable infrastructure, public service delivery, resilience, empowerment of women and disadvantaged and vulnerable groups, and digital transformation, while mobilising additional resources through cofinancing and innovative instruments such as green and local currency bonds.