Nepal Clean Air and Prosperity (CAP) Project (WB-P506527)

Countries
  • Nepal
Geographic location where the impacts of the investment may be experienced.
Specific Location
Kathmandu Valley and Terai region
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
  • World Bank (WB)
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
Oct 9, 2025
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 - Ministry of Forest and Environment
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
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.
Loan Amount (USD)
$ 150.00 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)
$ 5.00 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.
Project Cost (USD)
$ 155.00 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.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Mar 4, 2025

Disclosed by Bank Dec 23, 2024

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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.

According to the Bank’s website, the objective of this project is to reduce PM2.5 emissions from priority sources and strengthen air quality management in Nepal.

Recognizing the importance of strengthening air quality management across the multiple sectors and jurisdictions of the IGP-HF region, the project seeks to (1) accelerate and cost-effectively reduce emissions from targeted industrial and commercial sources that are primary contributors to air pollution in the Kathmandu Valley and Terai region; and (2) strengthen air quality monitoring, governance, and enforcement in the country.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Environmental and social risks are substantial. The Project will support expansion and maintenance of AQ monitoring stations and replacement of old boilers and kilns with resource efficient cleaner technologies which will involve small scale civil works and may lead to temporary construction-related environmental and social impacts such as dust, water and noise pollution, and soil erosion. Other construction related activities may include risk of occupational health and safety and community health and safety. Dismantling, transport, and disposal of the boilers are not anticipated to produce hazardous wastes such as asbestos, PCBs, used oils, or refrigerants. Nevertheless, the project will screen old equipment for any hazardous materials during preparation and implementation phases.

Other social concern in this project is related to the potential exclusion of the most vulnerable and marginalized households and enterprises.

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

IDA Credit: US$ 150.00 million

Trust Funds - Program for Asia Resilience to Climate Change MDTF (grand amount): US$ 5.00 million


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.

World Bank

Martin Heger
Senior Environmental Economist

Borrower/Client/Recipient

Nepal
The Secretary
Ministry of Finance
moev@mof.gov.np

Implementing Agencies

Ministry of Forest and Environment
The Secretary
Ministry of Forests and Enviornment
info@mofe.gov.np

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works