KATHMANDU—The Asian Development Bank (ADB) announced on Monday the approval of a $125 million financing package aimed at improving irrigation access in Nepal’s rural Madhesh province. The package includes a blend of grants and loans intended to support sustainable agricultural practices and enhance water availability year-round.

According to Namibia Press Agency, the financing package is composed of a $110 million concessional loan and a $15 million grant from the Asian Development Fund, which targets ADB’s most vulnerable and financially disadvantaged members. The initiative, dubbed the Mechanical Irrigation Innovation Project, plans to construct a comprehensive network of deep tube wells complete with pump houses and an exclusive electricity distribution system to support them.

The project aims to install about 900 km of underground pressure pipe distribution networks that will facilitate the delivery of irrigation water from the pump houses directly to farms. It is anticipated that this development will enable farmers to transition to more climate-resilient agricultural practices, including the cultivation of high-value and high-yielding crops, adoption of efficient micro-irrigation techniques, and enhancement of marketing and value chain linkages among local farmers.