World Bank Approves $50 Million to Accelerate Nepal’s Digital Transformation

The World Bank has approved $50 million in new financing to strengthen Nepal's digital public infrastructure and digitize key public services, marking a major step toward modern, transparent and citizen-focused service delivery.

The financing, approved today by the World Bank's Board of Executive Directors, will support the Nepal Digital Transformation Project, which aims to fundamentally reshape how government services are accessed and delivered across the country.

Building Core Digital Platforms for Public Service Delivery

The project will invest in a new generation of national digital platforms, including:

• an integrated online citizen service portal

• an integrated social registry to improve targeting of services and benefits

• a secure, government-wide data exchange system

• a digital locker to manage verifiable credentials and enable digital wallet functions

These systems are expected to streamline access to services, reduce administrative bottlenecks and improve coordination across government agencies.

Digitising High-Impact Services, Starting With Land Administration

A key priority of the project is the digitisation of high-impact public services, beginning with land administration, with additional services to be added through a phased approach.

Officials say digitising land services will improve transparency, reduce delays, and strengthen trust in government processes, while paving the way for broader digital service expansion.

Strengthening Trust Through Cybersecurity and Data Governance

To build confidence in Nepal's growing digital economy, the project will also invest in:

• electronic signatures

• enhanced cybersecurity systems

• stronger data governance frameworks

The initiative will support legal and regulatory reforms aimed at improving digital safeguards and boosting trust in online transactions and service delivery.

Boosting Private Sector Participation in Data Infrastructure

The project is also designed to encourage greater private sector investment in Nepal's data infrastructure market by improving enabling regulations and strengthening the digital ecosystem.

World Bank officials said this will help create opportunities for innovation while supporting long-term sustainability of Nepal's digital transformation agenda.

"By investing in core digital platforms and digitalizing services, this project will help deliver enhanced services to people and businesses in an inclusive and transparent manner," said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka."It will improve service delivery, public sector efficiency, and good governance."

Joint Financing With Asian Development Bank

The project will be financed through a joint co-financing arrangement between the World Bank and the Asian Development Bank (ADB) under the Full Mutual Reliance Framework.

• The World Bank will act as the lead lender, providing $50 million

• ADB will serve as the trail lender, contributing an additional $40 million

ADB management is expected to present the project to its Board for consideration in March 2026.

Implementation and Next Steps

The Nepal Digital Transformation Project will be implemented by:

• the Ministry of Communications and Information Technology

• the Department of National ID and Civil Registration

The project is expected to lay the foundation for more inclusive, efficient and secure digital governance in Nepal, improving access to essential services for citizens and businesses nationwide.