South Asia Subregional Economic Cooperation Highway Improvement and Ecosystem Restoration Project (ADB-59156-001)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Nepal
Geographic location where the impacts of the investment may be experienced.
Specific Location
Chitwan National Park
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 9, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Nepal
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 220.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Media Documents
Community Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 19, 2026

Disclosed by Bank Sep 17, 2025

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The project will rehabilitate and upgrade 70 kilometers (km) of the EWH from Narayanghat towards Hetauda from two-lane to four-lane. Along the existing highway that bisects the Barandabhar wildlife corridor, at least a 2 km continuous section will be elevated to recreate the obstacle-free wildlife passage, thereby linking the Terai Arc Landscape and the Chitwan-Annapurna Landscape in Nepal. Additionally, wildlife crossing structures and control measures will be integrated into the at-grade road to mitigate wildlife-vehicle conflicts and minimize the indirect human-wildlife impact on the community. An additional service lane, complete with footpaths, cycle lanes, and road crossing facilities, will be provided in the urban area to enhance road safety for all road users.

The project will also upgrade the remaining 9.4 km Mugling-Abhukarhari section to a four-lane as part of the Mugling to Pokhara Highway. This includes (i) widening of 4.9 km of the existing highway, (ii) rehabilitation of 4.5 km of existing two-lane highway, and (iii) construction of two bridges and 4.5 km two-lane new road, This enhancement aims to establish complete road connectivity from the border points in the Tarrai region to Pokhara, which is situated in the middle mountain region of Nepal. This section was identified as the Phase 2 of the SASEC Mugling Pokhara Highway Improvement Phase 1 Project.

The road linking Pokhara to Mugling, connecting through Narayanghat, Hetauda, Pathlaiya to Birgunj/Raxaul or Kakarbhitta has been identified in three of the SASEC corridors road routes in the action plan for SASEC initiatives for 2024-2026, namely (i) Nepal/Bhutan-India corridor to Kolkata and Haldia, (ii) NepalIndiaBangladesh Corridor to Mongla and Chattogram, and (iii) Nepal/BhutanIndiaMyanmar Corridor to Monywa,. This development is anticipated to significantly reduce transport and trade costs between SASEC member countries and the two most important economic hubs of Nepal.

 

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

There have been recent spate of demolitions in Hatuda linked to the upgradation of the Eastern Western highway. According to first-hand testimony and documentation shared by community members and human rights monitors, households in Hetauda and other areas are facing or have already suffered demolition of their homes without meaningful consultation, adequate notice, compensation, or resettlement, affecting thousands of residents. Community estimates indicate that nearly 1,700 houses (home to approximately 10,000 people) may be impacted, although government accounts cite 531 structures. Disturbing reports describe bulldozers arriving at dawn, women pleading for demolition teams to stop, and men being forced away by security personnel. Residents attempting to peacefully assemble or protest were reportedly dispersed or prohibited from gathering, and several individuals monitoring the situation faced intimidation or arrest. The situation is especially alarming given that the Supreme Court of Nepal issued a stay order on Friday 5th November 2025 afternoon instructing authorities to halt all demolition activities. Despite this clear direction, houses were demolished early on Saturday morning, 6th December 2025. This constitutes a direct violation of the Supreme Court’s authority and Nepal’s constitutional framework.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Responsible ADB Officer: Chong, Sin Wai
Responsible ADB Department: Sectors Department 1
Responsible ADB Division: Transport Sector Office (SD1-TRA)
Executing Agencies: Ministry of Physical Infrastructure and Transport

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works